Correlation Between Shenzhen SDG and Wuhan Hvsen
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By analyzing existing cross correlation between Shenzhen SDG Information and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Wuhan Hvsen.
Diversification Opportunities for Shenzhen SDG and Wuhan Hvsen
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Wuhan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information 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 Shenzhen SDG 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 Shenzhen SDG Information 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 Shenzhen SDG i.e., Shenzhen SDG and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Wuhan Hvsen
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 1.23 times less return on investment than Wuhan Hvsen. But when comparing it to its historical volatility, Shenzhen SDG Information is 1.0 times less risky than Wuhan Hvsen. It trades about 0.04 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,245 in Wuhan Hvsen Biotechnology on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Wuhan Hvsen Biotechnology or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Shenzhen SDG Information |
| Wuhan Hvsen Biotechnology |
Shenzhen SDG and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and Wuhan Hvsen
The main advantage of trading using opposite Shenzhen SDG and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.| Shenzhen SDG vs. Gansu Jiu Steel | Shenzhen SDG vs. Shandong Mining Machinery | Shenzhen SDG vs. Aba Chemicals Corp | Shenzhen SDG vs. BlueFocus Communication Group |
| Wuhan Hvsen vs. Cultural Investment Holdings | Wuhan Hvsen vs. Gome Telecom Equipment | Wuhan Hvsen vs. Holitech Technology Co | Wuhan Hvsen vs. Zotye Automobile 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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