Correlation Between Wintao Communications and Shanghai Rongtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wintao Communications Co and Shanghai Rongtai Health, you can compare the effects of market volatilities on Wintao Communications and Shanghai Rongtai 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 Wintao Communications with a short position of Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Shanghai Rongtai.
Diversification Opportunities for Wintao Communications and Shanghai Rongtai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wintao and Shanghai is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health and Wintao Communications 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 Wintao Communications Co are associated (or correlated) with Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Wintao Communications i.e., Wintao Communications and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Wintao Communications and Shanghai Rongtai
Assuming the 90 days trading horizon Wintao Communications Co is expected to generate 1.57 times more return on investment than Shanghai Rongtai. However, Wintao Communications is 1.57 times more volatile than Shanghai Rongtai Health. It trades about 0.02 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.01 per unit of risk. If you would invest 2,571 in Wintao Communications Co on September 6, 2024 and sell it today you would lose (78.00) from holding Wintao Communications Co or give up 3.03% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Wintao Communications Co vs. Shanghai Rongtai Health
Performance |
Timeline |
Wintao Communications |
Shanghai Rongtai Health |
Wintao Communications and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wintao Communications and Shanghai Rongtai
The main advantage of trading using opposite Wintao Communications and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.The idea behind Wintao Communications Co and Shanghai Rongtai Health 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.
Shanghai Rongtai vs. Hubei Xingfa Chemicals | Shanghai Rongtai vs. Shantui Construction Machinery | Shanghai Rongtai vs. Bus Online Co | Shanghai Rongtai vs. Xingguang Agricultural Mach |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |