Correlation Between Wuhan Hvsen and Metro Investment
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Metro Investment Development, you can compare the effects of market volatilities on Wuhan Hvsen and Metro Investment 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 Metro Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Metro Investment.
Diversification Opportunities for Wuhan Hvsen and Metro Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Metro is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Metro Investment Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Investment Dev 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 Metro Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Investment Dev has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Metro Investment go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Metro Investment
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 0.95 times more return on investment than Metro Investment. However, Wuhan Hvsen Biotechnology is 1.05 times less risky than Metro Investment. It trades about 0.24 of its potential returns per unit of risk. Metro Investment Development is currently generating about 0.02 per unit of risk. If you would invest 1,106 in Wuhan Hvsen Biotechnology on September 1, 2024 and sell it today you would earn a total of 143.00 from holding Wuhan Hvsen Biotechnology or generate 12.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Metro Investment Development
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Metro Investment Dev |
Wuhan Hvsen and Metro Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Metro Investment
The main advantage of trading using opposite Wuhan Hvsen and Metro Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Metro Investment 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 Metro Investment will offset losses from the drop in Metro Investment's long position.| Wuhan Hvsen vs. PetroChina Co Ltd | Wuhan Hvsen vs. China Mobile Limited | Wuhan Hvsen vs. CNOOC Limited | Wuhan Hvsen vs. Ping An Insurance |
| Metro Investment vs. BeiGene | Metro Investment vs. Kweichow Moutai Co | Metro Investment vs. Beijing Roborock Technology | Metro Investment vs. G bits Network Technology |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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