Correlation Between Wuhan Hvsen and Air China
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Air China Ltd, you can compare the effects of market volatilities on Wuhan Hvsen and Air China 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 Air China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Air China.
Diversification Opportunities for Wuhan Hvsen and Air China
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Air is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Air China Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Air China 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 Air China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Air China has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Air China go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Air China
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Air China. In addition to that, Wuhan Hvsen is 1.14 times more volatile than Air China Ltd. It trades about -0.18 of its total potential returns per unit of risk. Air China Ltd is currently generating about -0.03 per unit of volatility. If you would invest 827.00 in Air China Ltd on September 28, 2024 and sell it today you would lose (16.00) from holding Air China Ltd or give up 1.93% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Air China Ltd
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Air China |
Wuhan Hvsen and Air China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Air China
The main advantage of trading using opposite Wuhan Hvsen and Air China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Air China 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 Air China will offset losses from the drop in Air China's long position.| Wuhan Hvsen vs. Dook Media Group | Wuhan Hvsen vs. Northern United Publishing | Wuhan Hvsen vs. Chinese Universe Publishing | Wuhan Hvsen vs. Qtone Education Group |
| Air China vs. Industrial and Commercial | Air China vs. Agricultural Bank of | Air China vs. China Construction Bank | Air China vs. Bank of China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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