Correlation Between Wuhan Hvsen and Shanghai Broadband
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shanghai Broadband Technology, you can compare the effects of market volatilities on Wuhan Hvsen and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shanghai Broadband.
Diversification Opportunities for Wuhan Hvsen and Shanghai Broadband
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shanghai Broadband
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shanghai Broadband. In addition to that, Wuhan Hvsen is 1.13 times more volatile than Shanghai Broadband Technology. It trades about -0.04 of its total potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.01 per unit of volatility. If you would invest 458.00 in Shanghai Broadband Technology on September 28, 2024 and sell it today you would lose (103.00) from holding Shanghai Broadband Technology or give up 22.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shanghai Broadband |
Wuhan Hvsen and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shanghai Broadband
The main advantage of trading using opposite Wuhan Hvsen and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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