Correlation Between Wuhan Hvsen and China Securities
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and China Securities 800, you can compare the effects of market volatilities on Wuhan Hvsen and China Securities 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 China Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and China Securities.
Diversification Opportunities for Wuhan Hvsen and China Securities
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and China is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and China Securities 800 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Securities 800 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 China Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Securities 800 has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and China Securities go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and China Securities
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the China Securities. In addition to that, Wuhan Hvsen is 2.33 times more volatile than China Securities 800. It trades about -0.02 of its total potential returns per unit of risk. China Securities 800 is currently generating about 0.01 per unit of volatility. If you would invest 414,911 in China Securities 800 on September 13, 2024 and sell it today you would earn a total of 18,073 from holding China Securities 800 or generate 4.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. China Securities 800
Performance |
| Timeline |
Wuhan Hvsen and China Securities Volatility Contrast
Predicted Return Density |
| Returns |
Wuhan Hvsen Biotechnology
Pair trading matchups for Wuhan Hvsen
China Securities 800
Pair trading matchups for China Securities
Pair Trading with Wuhan Hvsen and China Securities
The main advantage of trading using opposite Wuhan Hvsen and China Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, China Securities 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 China Securities will offset losses from the drop in China Securities' long position.| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China | Wuhan Hvsen vs. Agricultural Bank of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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