Correlation Between Jiangsu Yanghe and Wuhan Hvsen
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Jiangsu Yanghe 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 Jiangsu Yanghe with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Wuhan Hvsen.
Diversification Opportunities for Jiangsu Yanghe and Wuhan Hvsen
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Wuhan is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery 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 Jiangsu Yanghe 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 Jiangsu Yanghe Brewery 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 Jiangsu Yanghe i.e., Jiangsu Yanghe and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Wuhan Hvsen
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.45 times more return on investment than Wuhan Hvsen. However, Jiangsu Yanghe Brewery is 2.2 times less risky than Wuhan Hvsen. It trades about -0.25 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.41 per unit of risk. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (554.00) from holding Jiangsu Yanghe Brewery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Wuhan Hvsen Biotechnology |
Jiangsu Yanghe and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Wuhan Hvsen
The main advantage of trading using opposite Jiangsu Yanghe and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe 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.| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
| Wuhan Hvsen vs. Wuhan Yangtze Communication | Wuhan Hvsen vs. Jiangxi Hengda Hi Tech | Wuhan Hvsen vs. Giantec Semiconductor Corp | Wuhan Hvsen vs. Suzhou Oriental Semiconductor |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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