Correlation Between Wuhan Hvsen and Hua Xia
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Hua Xia Bank, you can compare the effects of market volatilities on Wuhan Hvsen and Hua Xia 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 Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Hua Xia.
Diversification Opportunities for Wuhan Hvsen and Hua Xia
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Hua is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank 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 Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Hua Xia go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Hua Xia
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Hua Xia. In addition to that, Wuhan Hvsen is 2.21 times more volatile than Hua Xia Bank. It trades about -0.24 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about 0.26 per unit of volatility. If you would invest 744.00 in Hua Xia Bank on September 29, 2024 and sell it today you would earn a total of 51.00 from holding Hua Xia Bank or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Hua Xia Bank
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Hua Xia Bank |
Wuhan Hvsen and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Hua Xia
The main advantage of trading using opposite Wuhan Hvsen and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Wuhan Hvsen vs. Dook Media Group | Wuhan Hvsen vs. Northern United Publishing | Wuhan Hvsen vs. Chinese Universe Publishing | Wuhan Hvsen vs. Qtone Education Group |
| Hua Xia vs. Kweichow Moutai Co | Hua Xia vs. Contemporary Amperex Technology | Hua Xia vs. G bits Network Technology | Hua Xia vs. BYD Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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