Correlation Between Wuhan Hvsen and Shenzhen Centralcon
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shenzhen Centralcon Investment, you can compare the effects of market volatilities on Wuhan Hvsen and Shenzhen Centralcon 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 Wuhan Hvsen with a short position of Shenzhen Centralcon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shenzhen Centralcon.
Diversification Opportunities for Wuhan Hvsen and Shenzhen Centralcon
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shenzhen Centralcon Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Centralcon and Wuhan Hvsen 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 Wuhan Hvsen Biotechnology are associated (or correlated) with Shenzhen Centralcon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Centralcon has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shenzhen Centralcon go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shenzhen Centralcon
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shenzhen Centralcon. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.12 times less risky than Shenzhen Centralcon. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Centralcon Investment is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 884.00 in Shenzhen Centralcon Investment on September 1, 2024 and sell it today you would lose (344.00) from holding Shenzhen Centralcon Investment or give up 38.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shenzhen Centralcon Investment
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shenzhen Centralcon |
Wuhan Hvsen and Shenzhen Centralcon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shenzhen Centralcon
The main advantage of trading using opposite Wuhan Hvsen and Shenzhen Centralcon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shenzhen Centralcon 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 Shenzhen Centralcon will offset losses from the drop in Shenzhen Centralcon's long position.| Wuhan Hvsen vs. PetroChina Co Ltd | Wuhan Hvsen vs. China Mobile Limited | Wuhan Hvsen vs. CNOOC Limited | Wuhan Hvsen vs. Ping An Insurance |
| Shenzhen Centralcon vs. Anhui Huilong Agricultural | Shenzhen Centralcon vs. Huitong Construction Group | Shenzhen Centralcon vs. Kuangda Technology Group | Shenzhen Centralcon vs. Allied Machinery 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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