Correlation Between Wuhan Hvsen and Shaanxi Meineng
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shaanxi Meineng Clean, you can compare the effects of market volatilities on Wuhan Hvsen and Shaanxi Meineng 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 Shaanxi Meineng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shaanxi Meineng.
Diversification Opportunities for Wuhan Hvsen and Shaanxi Meineng
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Shaanxi is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shaanxi Meineng Clean in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Meineng Clean 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 Shaanxi Meineng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Meineng Clean has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shaanxi Meineng go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shaanxi Meineng
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shaanxi Meineng. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.06 times less risky than Shaanxi Meineng. The stock trades about -0.01 of its potential returns per unit of risk. The Shaanxi Meineng Clean is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,378 in Shaanxi Meineng Clean on September 12, 2024 and sell it today you would lose (9.00) from holding Shaanxi Meineng Clean or give up 0.65% 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. Shaanxi Meineng Clean
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shaanxi Meineng Clean |
Wuhan Hvsen and Shaanxi Meineng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shaanxi Meineng
The main advantage of trading using opposite Wuhan Hvsen and Shaanxi Meineng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shaanxi Meineng 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 Shaanxi Meineng will offset losses from the drop in Shaanxi Meineng's long position.| Wuhan Hvsen vs. Cultural Investment Holdings | Wuhan Hvsen vs. Gome Telecom Equipment | Wuhan Hvsen vs. Holitech Technology Co | Wuhan Hvsen vs. Zotye Automobile Co |
| Shaanxi Meineng vs. Gansu Jiu Steel | Shaanxi Meineng vs. Shandong Mining Machinery | Shaanxi Meineng vs. Aba Chemicals Corp | Shaanxi Meineng vs. BlueFocus Communication Group |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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