Correlation Between Wuhan Hvsen and Ningbo Tech
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Ningbo Tech Bank Co, you can compare the effects of market volatilities on Wuhan Hvsen and Ningbo Tech 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 Ningbo Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Ningbo Tech.
Diversification Opportunities for Wuhan Hvsen and Ningbo Tech
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Ningbo is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Ningbo Tech Bank Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Tech Bank 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 Ningbo Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Tech Bank has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Ningbo Tech go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Ningbo Tech
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Ningbo Tech. In addition to that, Wuhan Hvsen is 1.43 times more volatile than Ningbo Tech Bank Co. It trades about -0.3 of its total potential returns per unit of risk. Ningbo Tech Bank Co is currently generating about -0.17 per unit of volatility. If you would invest 306.00 in Ningbo Tech Bank Co on October 17, 2024 and sell it today you would lose (27.00) from holding Ningbo Tech Bank Co or give up 8.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Ningbo Tech Bank Co
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Ningbo Tech Bank |
Wuhan Hvsen and Ningbo Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Ningbo Tech
The main advantage of trading using opposite Wuhan Hvsen and Ningbo Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Ningbo Tech 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 Ningbo Tech will offset losses from the drop in Ningbo Tech's long position.| Wuhan Hvsen vs. Zhengzhou Qianweiyangchu Food | Wuhan Hvsen vs. Sichuan Fulin Transportation | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. Longjian Road Bridge |
| Ningbo Tech vs. YiDong Electronics Technology | Ningbo Tech vs. Nantong Haixing Electronics | Ningbo Tech vs. Winner Medical Co | Ningbo Tech vs. Beijing YanDong MicroElectronic |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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