Correlation Between Wuhan Hvsen and Cultural Investment
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Cultural Investment Holdings, you can compare the effects of market volatilities on Wuhan Hvsen and Cultural 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Cultural Investment.
Diversification Opportunities for Wuhan Hvsen and Cultural Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Cultural is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Cultural Investment go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Cultural Investment
Assuming the 90 days trading horizon Wuhan Hvsen is expected to generate 1.62 times less return on investment than Cultural Investment. In addition to that, Wuhan Hvsen is 1.06 times more volatile than Cultural Investment Holdings. It trades about 0.05 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.09 per unit of volatility. If you would invest 168.00 in Cultural Investment Holdings on September 3, 2024 and sell it today you would earn a total of 52.00 from holding Cultural Investment Holdings or generate 30.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Cultural Investment Holdings
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Cultural Investment |
Wuhan Hvsen and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Cultural Investment
The main advantage of trading using opposite Wuhan Hvsen and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Cultural 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Wuhan Hvsen vs. Chengdu Kanghua Biological | Wuhan Hvsen vs. Beijing Wantai Biological | Wuhan Hvsen vs. Suzhou Novoprotein Scientific | Wuhan Hvsen vs. Aluminum Corp of |
| Cultural Investment vs. Anji Foodstuff Co | Cultural Investment vs. Shenzhen Clou Electronics | Cultural Investment vs. Muyuan Foodstuff Co | Cultural Investment vs. Leyard Optoelectronic |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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