Correlation Between Wuhan Hvsen and Sinomach General
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Sinomach General Machinery, you can compare the effects of market volatilities on Wuhan Hvsen and Sinomach General 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 Sinomach General. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Sinomach General.
Diversification Opportunities for Wuhan Hvsen and Sinomach General
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Sinomach is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Sinomach General Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach General Mac 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 Sinomach General. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach General Mac has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Sinomach General go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Sinomach General
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Sinomach General. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.05 times less risky than Sinomach General. The stock trades about -0.04 of its potential returns per unit of risk. The Sinomach General Machinery is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,325 in Sinomach General Machinery on October 11, 2024 and sell it today you would earn a total of 139.00 from holding Sinomach General Machinery or generate 10.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Sinomach General Machinery
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Sinomach General Mac |
Wuhan Hvsen and Sinomach General Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Sinomach General
The main advantage of trading using opposite Wuhan Hvsen and Sinomach General positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Sinomach General 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 Sinomach General will offset losses from the drop in Sinomach General's long position.| Wuhan Hvsen vs. Wuhan Yangtze Communication | Wuhan Hvsen vs. Jiangxi Hengda Hi Tech | Wuhan Hvsen vs. Giantec Semiconductor Corp | Wuhan Hvsen vs. Suzhou Oriental Semiconductor |
| Sinomach General vs. Luyin Investment Group | Sinomach General vs. Fujian Anjoy Foods | Sinomach General vs. Bohai Leasing Co | Sinomach General vs. Muyuan Foodstuff Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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