Correlation Between Grandblue Environment and Wanhua Chemical
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By analyzing existing cross correlation between Grandblue Environment Co and Wanhua Chemical Group, you can compare the effects of market volatilities on Grandblue Environment and Wanhua Chemical 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 Grandblue Environment with a short position of Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grandblue Environment and Wanhua Chemical.
Diversification Opportunities for Grandblue Environment and Wanhua Chemical
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Grandblue and Wanhua is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Grandblue Environment Co and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group and Grandblue Environment 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 Grandblue Environment Co are associated (or correlated) with Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Grandblue Environment i.e., Grandblue Environment and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Grandblue Environment and Wanhua Chemical
Assuming the 90 days trading horizon Grandblue Environment Co is expected to generate 0.75 times more return on investment than Wanhua Chemical. However, Grandblue Environment Co is 1.33 times less risky than Wanhua Chemical. It trades about 0.18 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.01 per unit of risk. If you would invest 1,875 in Grandblue Environment Co on September 23, 2024 and sell it today you would earn a total of 390.00 from holding Grandblue Environment Co or generate 20.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Grandblue Environment Co vs. Wanhua Chemical Group
Performance |
Timeline |
Grandblue Environment |
Wanhua Chemical Group |
Grandblue Environment and Wanhua Chemical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Grandblue Environment and Wanhua Chemical
The main advantage of trading using opposite Grandblue Environment and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grandblue Environment position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.Grandblue Environment vs. BeiGene | Grandblue Environment vs. Kweichow Moutai Co | Grandblue Environment vs. Beijing Roborock Technology | Grandblue Environment vs. G bits Network Technology |
Wanhua Chemical vs. Zijin Mining Group | Wanhua Chemical vs. Baoshan Iron Steel | Wanhua Chemical vs. Shandong Gold Mining | Wanhua Chemical vs. Rongsheng Petrochemical 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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