Correlation Between Wuhan Hvsen and China International
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and China International Capital, you can compare the effects of market volatilities on Wuhan Hvsen and China International 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 China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and China International.
Diversification Opportunities for Wuhan Hvsen and China International
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and China is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and China International Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International 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 China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and China International go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and China International
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 2.18 times more return on investment than China International. However, Wuhan Hvsen is 2.18 times more volatile than China International Capital. It trades about 0.23 of its potential returns per unit of risk. China International Capital is currently generating about -0.03 per unit of risk. If you would invest 938.00 in Wuhan Hvsen Biotechnology on November 6, 2024 and sell it today you would earn a total of 99.00 from holding Wuhan Hvsen Biotechnology or generate 10.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. China International Capital
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| China International |
Wuhan Hvsen and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and China International
The main advantage of trading using opposite Wuhan Hvsen and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, China International 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 China International will offset losses from the drop in China International's long position.| Wuhan Hvsen vs. Lotus Health Group | Wuhan Hvsen vs. China Sports Industry | Wuhan Hvsen vs. SSAW Hotels Resorts | Wuhan Hvsen vs. Impulse Qingdao Health |
| China International vs. Xiamen Insight Investment | China International vs. Hunan Investment Group | China International vs. Qilu Bank Co | China International vs. Nuode Investment Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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