Correlation Between De Rucci and WuXi AppTec
Specify exactly 2 symbols:
By analyzing existing cross correlation between De Rucci Healthy and WuXi AppTec Co, you can compare the effects of market volatilities on De Rucci and WuXi AppTec 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 De Rucci with a short position of WuXi AppTec. Check out your portfolio center. Please also check ongoing floating volatility patterns of De Rucci and WuXi AppTec.
Diversification Opportunities for De Rucci and WuXi AppTec
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 001323 and WuXi is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding De Rucci Healthy and WuXi AppTec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi AppTec and De Rucci 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 De Rucci Healthy are associated (or correlated) with WuXi AppTec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi AppTec has no effect on the direction of De Rucci i.e., De Rucci and WuXi AppTec go up and down completely randomly.
Pair Corralation between De Rucci and WuXi AppTec
Assuming the 90 days trading horizon De Rucci Healthy is expected to under-perform the WuXi AppTec. But the stock apears to be less risky and, when comparing its historical volatility, De Rucci Healthy is 1.12 times less risky than WuXi AppTec. The stock trades about -0.09 of its potential returns per unit of risk. The WuXi AppTec Co is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 4,910 in WuXi AppTec Co on September 24, 2024 and sell it today you would earn a total of 669.00 from holding WuXi AppTec Co or generate 13.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
De Rucci Healthy vs. WuXi AppTec Co
Performance |
Timeline |
De Rucci Healthy |
WuXi AppTec |
De Rucci and WuXi AppTec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with De Rucci and WuXi AppTec
The main advantage of trading using opposite De Rucci and WuXi AppTec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if De Rucci position performs unexpectedly, WuXi AppTec 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 WuXi AppTec will offset losses from the drop in WuXi AppTec's long position.De Rucci vs. Agricultural Bank of | De Rucci vs. Industrial and Commercial | De Rucci vs. Bank of China | De Rucci vs. China Construction Bank |
WuXi AppTec vs. Poly Real Estate | WuXi AppTec vs. China Vanke Co | WuXi AppTec vs. China Merchants Shekou | WuXi AppTec vs. Huafa Industrial Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |