Correlation Between Wuhan Hvsen and Hangzhou Minsheng
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Wuhan Hvsen and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Hangzhou Minsheng.
Diversification Opportunities for Wuhan Hvsen and Hangzhou Minsheng
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Hangzhou is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Hangzhou Minsheng
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 1.16 times more return on investment than Hangzhou Minsheng. However, Wuhan Hvsen is 1.16 times more volatile than Hangzhou Minsheng Healthcare. It trades about 0.1 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about 0.06 per unit of risk. If you would invest 777.00 in Wuhan Hvsen Biotechnology on October 18, 2024 and sell it today you would earn a total of 220.00 from holding Wuhan Hvsen Biotechnology or generate 28.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Hangzhou Minsheng |
Wuhan Hvsen and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Hangzhou Minsheng
The main advantage of trading using opposite Wuhan Hvsen and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Wuhan Hvsen vs. Zhengzhou Qianweiyangchu Food | Wuhan Hvsen vs. Sichuan Fulin Transportation | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. Longjian Road Bridge |
| Hangzhou Minsheng vs. Jinhe Biotechnology Co | Hangzhou Minsheng vs. Dawning Information Industry | Hangzhou Minsheng vs. Wuhan Hvsen Biotechnology | Hangzhou Minsheng vs. East Money Information |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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