Correlation Between Guangdong Wens and Wuhan Hvsen
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By analyzing existing cross correlation between Guangdong Wens Foodstuff and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Guangdong Wens 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 Guangdong Wens with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Wens and Wuhan Hvsen.
Diversification Opportunities for Guangdong Wens and Wuhan Hvsen
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangdong and Wuhan is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Wens Foodstuff 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 Guangdong Wens 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 Guangdong Wens Foodstuff 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 Guangdong Wens i.e., Guangdong Wens and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Guangdong Wens and Wuhan Hvsen
Assuming the 90 days trading horizon Guangdong Wens Foodstuff is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Wens Foodstuff is 2.45 times less risky than Wuhan Hvsen. The stock trades about -0.24 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,033 in Wuhan Hvsen Biotechnology on October 26, 2024 and sell it today you would lose (26.00) from holding Wuhan Hvsen Biotechnology or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Wens Foodstuff vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Guangdong Wens Foodstuff |
| Wuhan Hvsen Biotechnology |
Guangdong Wens and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Wens and Wuhan Hvsen
The main advantage of trading using opposite Guangdong Wens and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Wens 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.| Guangdong Wens vs. Kweichow Moutai Co | Guangdong Wens vs. Contemporary Amperex Technology | Guangdong Wens vs. G bits Network Technology | Guangdong Wens vs. Beijing Roborock Technology |
| Wuhan Hvsen vs. Guangdong Wens Foodstuff | Wuhan Hvsen vs. Ligao Foods CoLtd | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. HaiXin Foods 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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