Correlation Between Wuhan Hvsen and AVCON Information
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and AVCON Information Tech, you can compare the effects of market volatilities on Wuhan Hvsen and AVCON Information 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 AVCON Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and AVCON Information.
Diversification Opportunities for Wuhan Hvsen and AVCON Information
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and AVCON is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and AVCON Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AVCON Information Tech 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 AVCON Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AVCON Information Tech has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and AVCON Information go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and AVCON Information
Assuming the 90 days trading horizon Wuhan Hvsen is expected to generate 1.11 times less return on investment than AVCON Information. But when comparing it to its historical volatility, Wuhan Hvsen Biotechnology is 1.31 times less risky than AVCON Information. It trades about 0.28 of its potential returns per unit of risk. AVCON Information Tech is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 425.00 in AVCON Information Tech on September 4, 2024 and sell it today you would earn a total of 72.00 from holding AVCON Information Tech or generate 16.94% 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. AVCON Information Tech
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| AVCON Information Tech |
Wuhan Hvsen and AVCON Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and AVCON Information
The main advantage of trading using opposite Wuhan Hvsen and AVCON Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, AVCON Information 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 AVCON Information will offset losses from the drop in AVCON Information's long position.| Wuhan Hvsen vs. Kweichow Moutai Co | Wuhan Hvsen vs. Shenzhen Mindray Bio Medical | Wuhan Hvsen vs. Jiangsu Pacific Quartz | Wuhan Hvsen vs. G bits Network Technology |
| AVCON Information vs. Wuhan Hvsen Biotechnology | AVCON Information vs. China National Software | AVCON Information vs. Ningxia Younglight Chemicals | AVCON Information vs. Inspur Software Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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