Correlation Between Wuhan Hvsen and Shaanxi Broadcast
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shaanxi Broadcast TV, you can compare the effects of market volatilities on Wuhan Hvsen and Shaanxi Broadcast 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 Shaanxi Broadcast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shaanxi Broadcast.
Diversification Opportunities for Wuhan Hvsen and Shaanxi Broadcast
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Shaanxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shaanxi Broadcast TV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Broadcast 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 Shaanxi Broadcast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Broadcast has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shaanxi Broadcast go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shaanxi Broadcast
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shaanxi Broadcast. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.06 times less risky than Shaanxi Broadcast. The stock trades about -0.41 of its potential returns per unit of risk. The Shaanxi Broadcast TV is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 292.00 in Shaanxi Broadcast TV on October 11, 2024 and sell it today you would lose (56.00) from holding Shaanxi Broadcast TV or give up 19.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shaanxi Broadcast TV
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shaanxi Broadcast |
Wuhan Hvsen and Shaanxi Broadcast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shaanxi Broadcast
The main advantage of trading using opposite Wuhan Hvsen and Shaanxi Broadcast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shaanxi Broadcast 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 Shaanxi Broadcast will offset losses from the drop in Shaanxi Broadcast's long position.| Wuhan Hvsen vs. Wuhan Yangtze Communication | Wuhan Hvsen vs. Jiangxi Hengda Hi Tech | Wuhan Hvsen vs. Giantec Semiconductor Corp | Wuhan Hvsen vs. Suzhou Oriental Semiconductor |
| Shaanxi Broadcast vs. Nanxing Furniture Machinery | Shaanxi Broadcast vs. Shaanxi Construction Machinery | Shaanxi Broadcast vs. Shenwu Energy Saving | Shaanxi Broadcast vs. Sinomach General Machinery |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |