Correlation Between Allwin Telecommunicatio and Liaoning Chengda
Specify exactly 2 symbols:
By analyzing existing cross correlation between Allwin Telecommunication Co and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Allwin Telecommunicatio and Liaoning Chengda 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 Allwin Telecommunicatio with a short position of Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allwin Telecommunicatio and Liaoning Chengda.
Diversification Opportunities for Allwin Telecommunicatio and Liaoning Chengda
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Allwin and Liaoning is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Allwin Telecommunication Co and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio and Allwin Telecommunicatio 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 Allwin Telecommunication Co are associated (or correlated) with Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Allwin Telecommunicatio i.e., Allwin Telecommunicatio and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Allwin Telecommunicatio and Liaoning Chengda
Assuming the 90 days trading horizon Allwin Telecommunication Co is expected to generate 1.8 times more return on investment than Liaoning Chengda. However, Allwin Telecommunicatio is 1.8 times more volatile than Liaoning Chengda Biotechnology. It trades about 0.11 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about 0.08 per unit of risk. If you would invest 493.00 in Allwin Telecommunication Co on September 25, 2024 and sell it today you would earn a total of 138.00 from holding Allwin Telecommunication Co or generate 27.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 98.33% |
Values | Daily Returns |
Allwin Telecommunication Co vs. Liaoning Chengda Biotechnology
Performance |
Timeline |
Allwin Telecommunicatio |
Liaoning Chengda Bio |
Allwin Telecommunicatio and Liaoning Chengda Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Allwin Telecommunicatio and Liaoning Chengda
The main advantage of trading using opposite Allwin Telecommunicatio and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allwin Telecommunicatio position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.Allwin Telecommunicatio vs. Industrial and Commercial | Allwin Telecommunicatio vs. Agricultural Bank of | Allwin Telecommunicatio vs. China Construction Bank | Allwin Telecommunicatio vs. Bank of China |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |