Correlation Between Wuhan Hvsen and Fujian Boss
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Fujian Boss Software, you can compare the effects of market volatilities on Wuhan Hvsen and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Fujian Boss.
Diversification Opportunities for Wuhan Hvsen and Fujian Boss
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Fujian is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Fujian Boss go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Fujian Boss
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 1.29 times more return on investment than Fujian Boss. However, Wuhan Hvsen is 1.29 times more volatile than Fujian Boss Software. It trades about -0.41 of its potential returns per unit of risk. Fujian Boss Software is currently generating about -0.54 per unit of risk. If you would invest 1,233 in Wuhan Hvsen Biotechnology on October 11, 2024 and sell it today you would lose (271.00) from holding Wuhan Hvsen Biotechnology or give up 21.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Fujian Boss Software
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Fujian Boss Software |
Wuhan Hvsen and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Fujian Boss
The main advantage of trading using opposite Wuhan Hvsen and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' long position.| Wuhan Hvsen vs. Wuhan Yangtze Communication | Wuhan Hvsen vs. Jiangxi Hengda Hi Tech | Wuhan Hvsen vs. Giantec Semiconductor Corp | Wuhan Hvsen vs. Suzhou Oriental Semiconductor |
| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund Management |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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