Correlation Between Wuhan Hvsen and CITIC Metal
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and CITIC Metal Co, you can compare the effects of market volatilities on Wuhan Hvsen and CITIC Metal 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 CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and CITIC Metal.
Diversification Opportunities for Wuhan Hvsen and CITIC Metal
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and CITIC is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal 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 CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and CITIC Metal go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and CITIC Metal
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the CITIC Metal. In addition to that, Wuhan Hvsen is 1.16 times more volatile than CITIC Metal Co. It trades about -0.03 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.02 per unit of volatility. If you would invest 1,082 in CITIC Metal Co on November 19, 2024 and sell it today you would lose (346.00) from holding CITIC Metal Co or give up 31.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. CITIC Metal Co
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| CITIC Metal |
Wuhan Hvsen and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and CITIC Metal
The main advantage of trading using opposite Wuhan Hvsen and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, CITIC Metal 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 CITIC Metal will offset losses from the drop in CITIC Metal's long position.| Wuhan Hvsen vs. INKON Life Technology | Wuhan Hvsen vs. XiaMen HongXin Electron tech | Wuhan Hvsen vs. China Building Material | Wuhan Hvsen vs. Montage Technology Co |
| CITIC Metal vs. Allgens Medical Technology | CITIC Metal vs. Guangdong Liantai Environmental | CITIC Metal vs. Guolin Environmental Tech | CITIC Metal vs. Qiaoyin Environmental Tech |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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