Correlation Between Wenzhou Kangning and CEOTRONICS
Can any of the company-specific risk be diversified away by investing in both Wenzhou Kangning and CEOTRONICS 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 Wenzhou Kangning and CEOTRONICS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wenzhou Kangning Hospital and CEOTRONICS, you can compare the effects of market volatilities on Wenzhou Kangning and CEOTRONICS 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 Wenzhou Kangning with a short position of CEOTRONICS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wenzhou Kangning and CEOTRONICS.
Diversification Opportunities for Wenzhou Kangning and CEOTRONICS
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wenzhou and CEOTRONICS is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Wenzhou Kangning Hospital and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS and Wenzhou Kangning 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 Wenzhou Kangning Hospital are associated (or correlated) with CEOTRONICS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS has no effect on the direction of Wenzhou Kangning i.e., Wenzhou Kangning and CEOTRONICS go up and down completely randomly.
Pair Corralation between Wenzhou Kangning and CEOTRONICS
Assuming the 90 days trading horizon Wenzhou Kangning Hospital is expected to under-perform the CEOTRONICS. But the stock apears to be less risky and, when comparing its historical volatility, Wenzhou Kangning Hospital is 2.51 times less risky than CEOTRONICS. The stock trades about -0.02 of its potential returns per unit of risk. The CEOTRONICS is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,365 in CEOTRONICS on September 2, 2025 and sell it today you would lose (5.00) from holding CEOTRONICS or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wenzhou Kangning Hospital vs. CEOTRONICS
Performance |
| Timeline |
| Wenzhou Kangning Hospital |
| CEOTRONICS |
Wenzhou Kangning and CEOTRONICS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wenzhou Kangning and CEOTRONICS
The main advantage of trading using opposite Wenzhou Kangning and CEOTRONICS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wenzhou Kangning position performs unexpectedly, CEOTRONICS 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 CEOTRONICS will offset losses from the drop in CEOTRONICS's long position.| Wenzhou Kangning vs. GEAR4MUSIC LS 10 | Wenzhou Kangning vs. Warner Music Group | Wenzhou Kangning vs. United Airlines Holdings | Wenzhou Kangning vs. SINGAPORE AIRLINES |
| CEOTRONICS vs. INTERSHOP Communications Aktiengesellschaft | CEOTRONICS vs. Zoom Video Communications | CEOTRONICS vs. Gamma Communications plc | CEOTRONICS vs. Harmony Gold Mining |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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