Correlation Between Wuhan Hvsen and Fujian Anjoy
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Fujian Anjoy Foods, you can compare the effects of market volatilities on Wuhan Hvsen and Fujian Anjoy 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 Fujian Anjoy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Fujian Anjoy.
Diversification Opportunities for Wuhan Hvsen and Fujian Anjoy
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Wuhan and Fujian is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Fujian Anjoy Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Anjoy Foods 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 Fujian Anjoy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Anjoy Foods has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Fujian Anjoy go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Fujian Anjoy
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Fujian Anjoy. In addition to that, Wuhan Hvsen is 1.1 times more volatile than Fujian Anjoy Foods. It trades about -0.43 of its total potential returns per unit of risk. Fujian Anjoy Foods is currently generating about -0.12 per unit of volatility. If you would invest 8,283 in Fujian Anjoy Foods on October 10, 2024 and sell it today you would lose (564.00) from holding Fujian Anjoy Foods or give up 6.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Fujian Anjoy Foods
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Fujian Anjoy Foods |
Wuhan Hvsen and Fujian Anjoy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Fujian Anjoy
The main advantage of trading using opposite Wuhan Hvsen and Fujian Anjoy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Fujian Anjoy 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 Fujian Anjoy will offset losses from the drop in Fujian Anjoy's long position.| Wuhan Hvsen vs. Caihong Display Devices | Wuhan Hvsen vs. Chengtun Mining Group | Wuhan Hvsen vs. Xinjiang Baodi Mining | Wuhan Hvsen vs. Tianjin Silvery Dragon |
| Fujian Anjoy vs. Semiconductor Manufacturing Electronics | Fujian Anjoy vs. Mango Excellent Media | Fujian Anjoy vs. Fuzhou Rockchip Electronics | Fujian Anjoy vs. YiDong Electronics Technology |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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