Correlation Between Wuhan Hvsen and Shenzhen Silver
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shenzhen Silver Basis, you can compare the effects of market volatilities on Wuhan Hvsen and Shenzhen Silver 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 Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shenzhen Silver.
Diversification Opportunities for Wuhan Hvsen and Shenzhen Silver
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Shenzhen is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shenzhen Silver
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 1.01 times more return on investment than Shenzhen Silver. However, Wuhan Hvsen is 1.01 times more volatile than Shenzhen Silver Basis. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.05 per unit of risk. If you would invest 1,003 in Wuhan Hvsen Biotechnology on November 3, 2024 and sell it today you would earn a total of 34.00 from holding Wuhan Hvsen Biotechnology or generate 3.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shenzhen Silver Basis |
Wuhan Hvsen and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shenzhen Silver
The main advantage of trading using opposite Wuhan Hvsen and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shenzhen Silver 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 Silver will offset losses from the drop in Shenzhen Silver's long position.| Wuhan Hvsen vs. Hunan Mendale Hometextile | Wuhan Hvsen vs. Hangzhou Guotai Environmental | Wuhan Hvsen vs. Eit Environmental Development | Wuhan Hvsen vs. GreenTech Environmental Co |
| Shenzhen Silver vs. China Longyuan Power | Shenzhen Silver vs. PetroChina Co Ltd | Shenzhen Silver vs. Guangxi Guiguan Electric | Shenzhen Silver vs. Yantai North Andre |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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