Correlation Between Wuhan Yangtze and Kingclean Electric
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By analyzing existing cross correlation between Wuhan Yangtze Communication and Kingclean Electric Co, you can compare the effects of market volatilities on Wuhan Yangtze and Kingclean Electric and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Wuhan Yangtze with a short position of Kingclean Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Kingclean Electric.
Diversification Opportunities for Wuhan Yangtze and Kingclean Electric
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wuhan and Kingclean is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Kingclean Electric Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingclean Electric and Wuhan Yangtze is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Wuhan Yangtze Communication are associated (or correlated) with Kingclean Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingclean Electric has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and Kingclean Electric go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Kingclean Electric
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.05 times more return on investment than Kingclean Electric. However, Wuhan Yangtze is 2.05 times more volatile than Kingclean Electric Co. It trades about 0.16 of its potential returns per unit of risk. Kingclean Electric Co is currently generating about 0.06 per unit of risk. If you would invest 1,619 in Wuhan Yangtze Communication on September 25, 2024 and sell it today you would earn a total of 794.00 from holding Wuhan Yangtze Communication or generate 49.04% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Wuhan Yangtze Communication vs. Kingclean Electric Co
Performance |
Timeline |
Wuhan Yangtze Commun |
Kingclean Electric |
Wuhan Yangtze and Kingclean Electric Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wuhan Yangtze and Kingclean Electric
The main advantage of trading using opposite Wuhan Yangtze and Kingclean Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, Kingclean Electric can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kingclean Electric will offset losses from the drop in Kingclean Electric's long position.Wuhan Yangtze vs. Eastern Air Logistics | Wuhan Yangtze vs. Hengli Industrial Development | Wuhan Yangtze vs. Anhui Gujing Distillery | Wuhan Yangtze vs. Qingdao Choho Industrial |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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