Correlation Between Hengli Industrial and Wuhan Hvsen
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By analyzing existing cross correlation between Hengli Industrial Development and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Hengli Industrial 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 Hengli Industrial with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Wuhan Hvsen.
Diversification Opportunities for Hengli Industrial and Wuhan Hvsen
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hengli and Wuhan is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development 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 Hengli Industrial 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 Hengli Industrial Development 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 Hengli Industrial i.e., Hengli Industrial and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Hengli Industrial and Wuhan Hvsen
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 1.24 times more return on investment than Wuhan Hvsen. However, Hengli Industrial is 1.24 times more volatile than Wuhan Hvsen Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 244.00 in Hengli Industrial Development on September 3, 2024 and sell it today you would lose (14.00) from holding Hengli Industrial Development or give up 5.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Hengli Industrial |
| Wuhan Hvsen Biotechnology |
Hengli Industrial and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Wuhan Hvsen
The main advantage of trading using opposite Hengli Industrial and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial 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.| Hengli Industrial vs. China Sports Industry | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Jilin Jlu Communication | Hengli Industrial vs. Guangdong Shenglu Telecommunication |
| Wuhan Hvsen vs. Chengdu Kanghua Biological | Wuhan Hvsen vs. Beijing Wantai Biological | Wuhan Hvsen vs. Suzhou Novoprotein Scientific | Wuhan Hvsen vs. Aluminum Corp of |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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