Correlation Between Wuhan Hvsen and Caihong Display
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Caihong Display Devices, you can compare the effects of market volatilities on Wuhan Hvsen and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Caihong Display.
Diversification Opportunities for Wuhan Hvsen and Caihong Display
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and Caihong is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Caihong Display go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Caihong Display
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Caihong Display. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.09 times less risky than Caihong Display. The stock trades about -0.09 of its potential returns per unit of risk. The Caihong Display Devices is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Caihong Display Devices on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Caihong Display Devices or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Caihong Display Devices
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Caihong Display Devices |
Wuhan Hvsen and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Caihong Display
The main advantage of trading using opposite Wuhan Hvsen and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Wuhan Hvsen vs. Yingde Greatchem Chemicals | Wuhan Hvsen vs. Miracll Chemicals Co | Wuhan Hvsen vs. Jiujiang Shanshui Technology | Wuhan Hvsen vs. Tianjin Ruixin Technology |
| Caihong Display vs. Ningbo Homelink Eco iTech | Caihong Display vs. Ziel Home Furnishing | Caihong Display vs. Guangdong Marubi Biotechnology | Caihong Display vs. Vohringer Home 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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