Correlation Between Wuhan Hvsen and Zhengping RoadBridge
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Wuhan Hvsen and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Zhengping RoadBridge.
Diversification Opportunities for Wuhan Hvsen and Zhengping RoadBridge
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Wuhan and Zhengping is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Zhengping RoadBridge
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.44 times less risky than Zhengping RoadBridge. The stock trades about -0.03 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 350.00 in Zhengping RoadBridge Constr on October 26, 2024 and sell it today you would lose (3.00) from holding Zhengping RoadBridge Constr or give up 0.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Zhengping RoadBridge Constr
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Zhengping RoadBridge |
Wuhan Hvsen and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Zhengping RoadBridge
The main advantage of trading using opposite Wuhan Hvsen and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge's long position.| Wuhan Hvsen vs. Guangdong Wens Foodstuff | Wuhan Hvsen vs. Ligao Foods CoLtd | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. HaiXin Foods Co |
| Zhengping RoadBridge vs. Shanghai Newtouch Software | Zhengping RoadBridge vs. Glodon Software Co | Zhengping RoadBridge vs. Zhuhai Comleader Information | Zhengping RoadBridge vs. Thunder Software 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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