Correlation Between Wuhan Hvsen and China Sports
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and China Sports Industry, you can compare the effects of market volatilities on Wuhan Hvsen and China Sports 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 Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and China Sports.
Diversification Opportunities for Wuhan Hvsen and China Sports
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and China is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and China Sports Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Sports Industry 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 Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Sports Industry has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and China Sports go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and China Sports
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the China Sports. In addition to that, Wuhan Hvsen is 1.2 times more volatile than China Sports Industry. It trades about -0.05 of its total potential returns per unit of risk. China Sports Industry is currently generating about 0.0 per unit of volatility. If you would invest 862.00 in China Sports Industry on October 15, 2024 and sell it today you would lose (132.00) from holding China Sports Industry or give up 15.31% 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 Sports Industry
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| China Sports Industry |
Wuhan Hvsen and China Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and China Sports
The main advantage of trading using opposite Wuhan Hvsen and China Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, China Sports 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 Sports will offset losses from the drop in China Sports' long position.| Wuhan Hvsen vs. Suzhou Weizhixiang Food | Wuhan Hvsen vs. Yankershop Food Co | Wuhan Hvsen vs. Kingsignal Technology Co | Wuhan Hvsen vs. Iat Automobile Technology |
| China Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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