Correlation Between Western Metal and Wuhan Hvsen
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By analyzing existing cross correlation between Western Metal Materials and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Western Metal 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 Western Metal with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Western Metal and Wuhan Hvsen.
Diversification Opportunities for Western Metal and Wuhan Hvsen
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Western and Wuhan is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Western Metal Materials 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 Western Metal 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 Western Metal Materials 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 Western Metal i.e., Western Metal and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Western Metal and Wuhan Hvsen
Assuming the 90 days trading horizon Western Metal Materials is expected to generate 0.98 times more return on investment than Wuhan Hvsen. However, Western Metal Materials is 1.02 times less risky than Wuhan Hvsen. It trades about 0.13 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.22 per unit of risk. If you would invest 1,643 in Western Metal Materials on September 28, 2024 and sell it today you would earn a total of 113.00 from holding Western Metal Materials or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Western Metal Materials vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Western Metal Materials |
| Wuhan Hvsen Biotechnology |
Western Metal and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Western Metal and Wuhan Hvsen
The main advantage of trading using opposite Western Metal and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Western Metal 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.| Western Metal vs. Guangzhou Tinci Materials | Western Metal vs. King Strong New Material | Western Metal vs. Circuit Fabology Microelectronics | Western Metal vs. Hangzhou Gaoxin Rubber |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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