Correlation Between Wuhan Hvsen and Shandong Polymer
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Wuhan Hvsen and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shandong Polymer.
Diversification Opportunities for Wuhan Hvsen and Shandong Polymer
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Shandong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shandong Polymer go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shandong Polymer
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 1.01 times more return on investment than Shandong Polymer. However, Wuhan Hvsen is 1.01 times more volatile than Shandong Polymer Biochemicals. It trades about 0.01 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.0 per unit of risk. If you would invest 1,267 in Wuhan Hvsen Biotechnology on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Wuhan Hvsen Biotechnology or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shandong Polymer Bio |
Wuhan Hvsen and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shandong Polymer
The main advantage of trading using opposite Wuhan Hvsen and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's 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 |
| Shandong Polymer vs. Zhejiang Kingland Pipeline | Shandong Polymer vs. Hangzhou Pinming Software | Shandong Polymer vs. Inspur Software Co | Shandong Polymer vs. Wuhan Hvsen Biotechnology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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