Correlation Between Wuhan Hvsen and China Eastern
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and China Eastern Airlines, you can compare the effects of market volatilities on Wuhan Hvsen and China Eastern 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 China Eastern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and China Eastern.
Diversification Opportunities for Wuhan Hvsen and China Eastern
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and China is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and China Eastern Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Eastern Airlines 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 China Eastern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Eastern Airlines has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and China Eastern go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and China Eastern
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the China Eastern. In addition to that, Wuhan Hvsen is 1.41 times more volatile than China Eastern Airlines. It trades about -0.15 of its total potential returns per unit of risk. China Eastern Airlines is currently generating about -0.05 per unit of volatility. If you would invest 408.00 in China Eastern Airlines on October 30, 2024 and sell it today you would lose (20.00) from holding China Eastern Airlines or give up 4.9% 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. China Eastern Airlines
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| China Eastern Airlines |
Wuhan Hvsen and China Eastern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and China Eastern
The main advantage of trading using opposite Wuhan Hvsen and China Eastern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, China Eastern 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 China Eastern will offset losses from the drop in China Eastern's long position.| Wuhan Hvsen vs. Guangdong Transtek Medical | Wuhan Hvsen vs. Zhongzhu Medical Holdings | Wuhan Hvsen vs. Cansino Biologics | Wuhan Hvsen vs. Kontour Medical Technology |
| China Eastern vs. Ningbo Tip Rubber | China Eastern vs. Jiangnan Mould Plastic | China Eastern vs. Nanya New Material | China Eastern vs. Hengerda New Materials |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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