Correlation Between Wuhan Hvsen and Luyin Investment
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Luyin Investment Group, you can compare the effects of market volatilities on Wuhan Hvsen and Luyin 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 Luyin Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Luyin Investment.
Diversification Opportunities for Wuhan Hvsen and Luyin Investment
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Luyin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Luyin Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luyin 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 Luyin Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luyin Investment has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Luyin Investment go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Luyin Investment
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 1.54 times more return on investment than Luyin Investment. However, Wuhan Hvsen is 1.54 times more volatile than Luyin Investment Group. It trades about 0.25 of its potential returns per unit of risk. Luyin Investment Group is currently generating about 0.06 per unit of risk. If you would invest 1,100 in Wuhan Hvsen Biotechnology on September 3, 2024 and sell it today you would earn a total of 149.00 from holding Wuhan Hvsen Biotechnology or generate 13.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Luyin Investment Group
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Luyin Investment |
Wuhan Hvsen and Luyin Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Luyin Investment
The main advantage of trading using opposite Wuhan Hvsen and Luyin Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Luyin 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 Luyin Investment will offset losses from the drop in Luyin 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 |
| Luyin Investment vs. Hunan Investment Group | Luyin Investment vs. King Strong New Material | Luyin Investment vs. Super Dragon Engineering Plastics | Luyin Investment vs. Anhui Deli Household |
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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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