Correlation Between Wuhan Hvsen and Jiangsu Jinling
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Jiangsu Jinling Sports, you can compare the effects of market volatilities on Wuhan Hvsen and Jiangsu Jinling 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 Jiangsu Jinling. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Jiangsu Jinling.
Diversification Opportunities for Wuhan Hvsen and Jiangsu Jinling
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Jiangsu is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Jiangsu Jinling Sports in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Jinling Sports 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 Jiangsu Jinling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Jinling Sports has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Jiangsu Jinling go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Jiangsu Jinling
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Jiangsu Jinling. In addition to that, Wuhan Hvsen is 1.04 times more volatile than Jiangsu Jinling Sports. It trades about -0.02 of its total potential returns per unit of risk. Jiangsu Jinling Sports is currently generating about 0.03 per unit of volatility. If you would invest 1,428 in Jiangsu Jinling Sports on September 3, 2024 and sell it today you would earn a total of 81.00 from holding Jiangsu Jinling Sports or generate 5.67% 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. Jiangsu Jinling Sports
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Jiangsu Jinling Sports |
Wuhan Hvsen and Jiangsu Jinling Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Jiangsu Jinling
The main advantage of trading using opposite Wuhan Hvsen and Jiangsu Jinling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Jiangsu Jinling 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 Jiangsu Jinling will offset losses from the drop in Jiangsu Jinling's long position.| Wuhan Hvsen vs. Chengdu Kanghua Biological | Wuhan Hvsen vs. Beijing Wantai Biological | Wuhan Hvsen vs. Suzhou Novoprotein Scientific | Wuhan Hvsen vs. Aluminum Corp of |
| Jiangsu Jinling vs. PetroChina Co Ltd | Jiangsu Jinling vs. China Mobile Limited | Jiangsu Jinling vs. Industrial and Commercial | Jiangsu Jinling vs. China Life Insurance |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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