Correlation Between Wuhan Hvsen and WuXi Xinje
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and WuXi Xinje Electric, you can compare the effects of market volatilities on Wuhan Hvsen and WuXi Xinje 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 WuXi Xinje. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and WuXi Xinje.
Diversification Opportunities for Wuhan Hvsen and WuXi Xinje
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and WuXi is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and WuXi Xinje Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WuXi Xinje Electric 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 WuXi Xinje. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WuXi Xinje Electric has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and WuXi Xinje go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and WuXi Xinje
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the WuXi Xinje. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.02 times less risky than WuXi Xinje. The stock trades about -0.15 of its potential returns per unit of risk. The WuXi Xinje Electric is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 3,504 in WuXi Xinje Electric on September 27, 2024 and sell it today you would earn a total of 584.00 from holding WuXi Xinje Electric or generate 16.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. WuXi Xinje Electric
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| WuXi Xinje Electric |
Wuhan Hvsen and WuXi Xinje Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and WuXi Xinje
The main advantage of trading using opposite Wuhan Hvsen and WuXi Xinje positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, WuXi Xinje 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 WuXi Xinje will offset losses from the drop in WuXi Xinje's long position.| Wuhan Hvsen vs. Western Metal Materials | Wuhan Hvsen vs. Super Dragon Engineering Plastics | Wuhan Hvsen vs. King Strong New Material | Wuhan Hvsen vs. Fuda Alloy Materials |
| WuXi Xinje vs. Industrial and Commercial | WuXi Xinje vs. China Construction Bank | WuXi Xinje vs. Agricultural Bank of | WuXi Xinje 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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