Correlation Between Wuhan Hvsen and Dr Peng
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Dr Peng Telecom, you can compare the effects of market volatilities on Wuhan Hvsen and Dr Peng 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 Dr Peng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Dr Peng.
Diversification Opportunities for Wuhan Hvsen and Dr Peng
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and 600804 is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Dr Peng Telecom in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dr Peng Telecom 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 Dr Peng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dr Peng Telecom has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Dr Peng go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Dr Peng
Assuming the 90 days trading horizon Wuhan Hvsen is expected to generate 2.4 times less return on investment than Dr Peng. But when comparing it to its historical volatility, Wuhan Hvsen Biotechnology is 1.72 times less risky than Dr Peng. It trades about 0.24 of its potential returns per unit of risk. Dr Peng Telecom is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 153.00 in Dr Peng Telecom on September 1, 2024 and sell it today you would earn a total of 51.00 from holding Dr Peng Telecom or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Dr Peng Telecom
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Dr Peng Telecom |
Wuhan Hvsen and Dr Peng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Dr Peng
The main advantage of trading using opposite Wuhan Hvsen and Dr Peng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Dr Peng 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 Dr Peng will offset losses from the drop in Dr Peng'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 |
| Dr Peng vs. Shandong Sinoglory Health | Dr Peng vs. Haima Automobile Group | Dr Peng vs. Guangzhou Automobile Group | Dr Peng vs. Yunnan Jianzhijia Health Chain |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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