Correlation Between Wuhan Hvsen and Shandong Sino
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shandong Sino Agri United, you can compare the effects of market volatilities on Wuhan Hvsen and Shandong Sino 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 Sino. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shandong Sino.
Diversification Opportunities for Wuhan Hvsen and Shandong Sino
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Shandong is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shandong Sino Agri United in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sino Agri 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 Sino. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sino Agri has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shandong Sino go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shandong Sino
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shandong Sino. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.43 times less risky than Shandong Sino. The stock trades about -0.09 of its potential returns per unit of risk. The Shandong Sino Agri United is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,477 in Shandong Sino Agri United on October 24, 2024 and sell it today you would earn a total of 36.00 from holding Shandong Sino Agri United or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shandong Sino Agri United
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shandong Sino Agri |
Wuhan Hvsen and Shandong Sino Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shandong Sino
The main advantage of trading using opposite Wuhan Hvsen and Shandong Sino positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shandong Sino 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 Sino will offset losses from the drop in Shandong Sino's long position.| Wuhan Hvsen vs. Senci Electric Machinery | Wuhan Hvsen vs. Hunan Tyen Machinery | Wuhan Hvsen vs. Masterwork Machinery | Wuhan Hvsen vs. Ningbo Construction Co |
| Shandong Sino vs. Fangda Special Steel | Shandong Sino vs. Hangzhou Guotai Environmental | Shandong Sino vs. Shanghai Rightongene Biotechnology | Shandong Sino vs. Gansu Jiu Steel |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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