Correlation Between AVCON Information and Wuhan Hvsen
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By analyzing existing cross correlation between AVCON Information Tech and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Wuhan Hvsen.
Diversification Opportunities for AVCON Information and Wuhan Hvsen
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between AVCON and Wuhan is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech 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 AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between AVCON Information and Wuhan Hvsen
Assuming the 90 days trading horizon AVCON Information Tech is expected to generate 1.3 times more return on investment than Wuhan Hvsen. However, AVCON Information is 1.3 times more volatile than Wuhan Hvsen Biotechnology. It trades about 0.04 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 364.00 in AVCON Information Tech on September 12, 2024 and sell it today you would earn a total of 126.00 from holding AVCON Information Tech or generate 34.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| AVCON Information Tech |
| Wuhan Hvsen Biotechnology |
AVCON Information and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Wuhan Hvsen
The main advantage of trading using opposite AVCON Information and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Gansu Jiu Steel | AVCON Information vs. Shandong Mining Machinery | AVCON Information vs. Aba Chemicals Corp | AVCON Information 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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