Correlation Between China Vanke and Wuhan Hvsen
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By analyzing existing cross correlation between China Vanke Co and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on China Vanke and Wuhan Hvsen 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 China Vanke with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Wuhan Hvsen.
Diversification Opportunities for China Vanke and Wuhan Hvsen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Wuhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology and China Vanke 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 China Vanke Co are associated (or correlated) with Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of China Vanke i.e., China Vanke and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between China Vanke and Wuhan Hvsen
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.24 times less risky than Wuhan Hvsen. The stock trades about -0.26 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,115 in Wuhan Hvsen Biotechnology on August 29, 2024 and sell it today you would earn a total of 25.00 from holding Wuhan Hvsen Biotechnology or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| China Vanke |
| Wuhan Hvsen Biotechnology |
China Vanke and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Wuhan Hvsen
The main advantage of trading using opposite China Vanke and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| China Vanke vs. Industrial and Commercial | China Vanke vs. China Construction Bank | China Vanke vs. Bank of China | China Vanke vs. Agricultural Bank of |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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