Correlation Between Shanghai Jinfeng and Wintao Communications
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Wintao Communications Co, you can compare the effects of market volatilities on Shanghai Jinfeng and Wintao Communications 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 Shanghai Jinfeng with a short position of Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Wintao Communications.
Diversification Opportunities for Shanghai Jinfeng and Wintao Communications
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Wintao is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Wintao Communications go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Wintao Communications
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 1.54 times more return on investment than Wintao Communications. However, Shanghai Jinfeng is 1.54 times more volatile than Wintao Communications Co. It trades about 0.02 of its potential returns per unit of risk. Wintao Communications Co is currently generating about 0.0 per unit of risk. If you would invest 581.00 in Shanghai Jinfeng Wine on September 25, 2024 and sell it today you would earn a total of 1.00 from holding Shanghai Jinfeng Wine or generate 0.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Shanghai Jinfeng Wine vs. Wintao Communications Co
Performance |
Timeline |
Shanghai Jinfeng Wine |
Wintao Communications |
Shanghai Jinfeng and Wintao Communications Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shanghai Jinfeng and Wintao Communications
The main advantage of trading using opposite Shanghai Jinfeng and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.Shanghai Jinfeng vs. ZJBC Information Technology | Shanghai Jinfeng vs. Harbin Air Conditioning | Shanghai Jinfeng vs. Longmaster Information Tech | Shanghai Jinfeng vs. Guangzhou Ruoyuchen Information |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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