Correlation Between Wuhan Hvsen and Dawning Information
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Dawning Information Industry, you can compare the effects of market volatilities on Wuhan Hvsen and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Dawning Information.
Diversification Opportunities for Wuhan Hvsen and Dawning Information
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Dawning is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Dawning Information go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Dawning Information
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 0.57 times more return on investment than Dawning Information. However, Wuhan Hvsen Biotechnology is 1.74 times less risky than Dawning Information. It trades about 0.04 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.15 per unit of risk. If you would invest 1,245 in Wuhan Hvsen Biotechnology on September 12, 2024 and sell it today you would earn a total of 22.00 from holding Wuhan Hvsen Biotechnology or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Dawning Information Industry
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Dawning Information |
Wuhan Hvsen and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Dawning Information
The main advantage of trading using opposite Wuhan Hvsen and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Wuhan Hvsen vs. Cultural Investment Holdings | Wuhan Hvsen vs. Gome Telecom Equipment | Wuhan Hvsen vs. Holitech Technology Co | Wuhan Hvsen vs. Zotye Automobile Co |
| Dawning Information vs. Gansu Jiu Steel | Dawning Information vs. Shandong Mining Machinery | Dawning Information vs. Aba Chemicals Corp | Dawning Information vs. BlueFocus Communication Group |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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