Correlation Between Yingde Greatchem and Wuhan Hvsen
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Yingde Greatchem 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 Yingde Greatchem with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Wuhan Hvsen.
Diversification Opportunities for Yingde Greatchem and Wuhan Hvsen
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yingde and Wuhan is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals 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 Yingde Greatchem 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 Yingde Greatchem Chemicals 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 Yingde Greatchem i.e., Yingde Greatchem and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Wuhan Hvsen
Assuming the 90 days trading horizon Yingde Greatchem is expected to generate 1.12 times less return on investment than Wuhan Hvsen. But when comparing it to its historical volatility, Yingde Greatchem Chemicals is 1.49 times less risky than Wuhan Hvsen. It trades about 0.28 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 945.00 in Wuhan Hvsen Biotechnology on November 4, 2024 and sell it today you would earn a total of 92.00 from holding Wuhan Hvsen Biotechnology or generate 9.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Yingde Greatchem Chemicals vs. Wuhan Hvsen Biotechnology
Performance |
Timeline |
Yingde Greatchem Che |
Wuhan Hvsen Biotechnology |
Yingde Greatchem and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Yingde Greatchem and Wuhan Hvsen
The main advantage of trading using opposite Yingde Greatchem and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem 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.Yingde Greatchem vs. Fujian Boss Software | Yingde Greatchem vs. Aier Eye Hospital | Yingde Greatchem vs. Beijing Baolande Software | Yingde Greatchem vs. Jiangsu Hoperun Software |
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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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