Correlation Between Wuhan Hvsen and Ningbo GQY
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Ningbo GQY Video, you can compare the effects of market volatilities on Wuhan Hvsen and Ningbo GQY 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 GQY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Ningbo GQY.
Diversification Opportunities for Wuhan Hvsen and Ningbo GQY
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Ningbo is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Ningbo GQY Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo GQY Video 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 GQY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo GQY Video has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Ningbo GQY go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Ningbo GQY
Assuming the 90 days trading horizon Wuhan Hvsen is expected to generate 5.64 times less return on investment than Ningbo GQY. But when comparing it to its historical volatility, Wuhan Hvsen Biotechnology is 2.07 times less risky than Ningbo GQY. It trades about 0.06 of its potential returns per unit of risk. Ningbo GQY Video is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 619.00 in Ningbo GQY Video on August 28, 2024 and sell it today you would earn a total of 92.00 from holding Ningbo GQY Video or generate 14.86% 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. Ningbo GQY Video
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Ningbo GQY Video |
Wuhan Hvsen and Ningbo GQY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Ningbo GQY
The main advantage of trading using opposite Wuhan Hvsen and Ningbo GQY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Ningbo GQY 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 GQY will offset losses from the drop in Ningbo GQY's long position.| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. Bank of China |
| Ningbo GQY vs. Shandong Mining Machinery | Ningbo GQY vs. Fujian Oriental Silver | Ningbo GQY vs. Harbin Air Conditioning | Ningbo GQY vs. Tibet Huayu Mining |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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