Correlation Between Wetouch Technology and Newmark

Can any of the company-specific risk be diversified away by investing in both Wetouch Technology and Newmark at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wetouch Technology and Newmark into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Wetouch Technology Common and Newmark Group, you can compare the effects of market volatilities on Wetouch Technology and Newmark 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 Wetouch Technology with a short position of Newmark. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wetouch Technology and Newmark.

Diversification Opportunities for Wetouch Technology and Newmark

0.11

Correlation Coefficient

Wetouch Technology  Newmark

Average diversification

The 3 months correlation between Wetouch and Newmark is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Wetouch Technology Common and Newmark Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Newmark Group and Wetouch Technology 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 Wetouch Technology Common are associated (or correlated) with Newmark. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Newmark Group has no effect on the direction of Wetouch Technology i.e., Wetouch Technology and Newmark go up and down completely randomly.

Pair Corralation between Wetouch Technology and Newmark

Given the investment horizon of 90 days Wetouch Technology Common is expected to generate 4.18 times more return on investment than Newmark. However, Wetouch Technology is 4.18 times more volatile than Newmark Group. It trades about 0.03 of its potential returns per unit of risk. Newmark Group is currently generating about 0.12 per unit of risk. If you would invest  171.00  in Wetouch Technology Common on August 31, 2024 and sell it today you would earn a total of  0.00  from holding Wetouch Technology Common or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Wetouch Technology Common  vs.  Newmark Group

Wetouch Technology Common

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Wetouch Technology Common are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly uncertain basic indicators, Wetouch Technology demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Newmark Group

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Newmark Group are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite quite conflicting basic indicators, Newmark disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Wetouch Technology and Newmark

The main advantage of trading using opposite Wetouch Technology and Newmark positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wetouch Technology position performs unexpectedly, Newmark 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 Newmark will offset losses from the drop in Newmark's long position.

The idea behind Wetouch Technology Common and Newmark Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.