Correlation Between Wuhan Hvsen and Jiangsu Broadcasting
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Wuhan Hvsen and Jiangsu Broadcasting 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 Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Jiangsu Broadcasting.
Diversification Opportunities for Wuhan Hvsen and Jiangsu Broadcasting
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Jiangsu is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting 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 Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Jiangsu Broadcasting
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Jiangsu Broadcasting. In addition to that, Wuhan Hvsen is 1.38 times more volatile than Jiangsu Broadcasting Cable. It trades about -0.41 of its total potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about -0.44 per unit of volatility. If you would invest 386.00 in Jiangsu Broadcasting Cable on October 11, 2024 and sell it today you would lose (67.00) from holding Jiangsu Broadcasting Cable or give up 17.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Jiangsu Broadcasting |
Wuhan Hvsen and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Jiangsu Broadcasting
The main advantage of trading using opposite Wuhan Hvsen and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting'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 |
| Jiangsu Broadcasting vs. Guangdong Xiongsu Technology | Jiangsu Broadcasting vs. ROPEOK Technology Group | Jiangsu Broadcasting vs. 360 Security Technology | Jiangsu Broadcasting vs. Songz Automobile Air |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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