Correlation Between Wuhan Hvsen and Guangdong Marubi
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on Wuhan Hvsen and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Guangdong Marubi.
Diversification Opportunities for Wuhan Hvsen and Guangdong Marubi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Guangdong Marubi go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Guangdong Marubi
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Guangdong Marubi. In addition to that, Wuhan Hvsen is 1.28 times more volatile than Guangdong Marubi Biotechnology. It trades about -0.01 of its total potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.03 per unit of volatility. If you would invest 2,484 in Guangdong Marubi Biotechnology on August 25, 2024 and sell it today you would earn a total of 284.00 from holding Guangdong Marubi Biotechnology or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Guangdong Marubi Bio |
Wuhan Hvsen and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Guangdong Marubi
The main advantage of trading using opposite Wuhan Hvsen and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| Wuhan Hvsen vs. China State Construction | Wuhan Hvsen vs. Poly Real Estate | Wuhan Hvsen vs. China Vanke Co | Wuhan Hvsen vs. China Merchants Shekou |
| Guangdong Marubi vs. Winner Medical Co | Guangdong Marubi vs. Jinhe Biotechnology Co | Guangdong Marubi vs. Shenzhen Bioeasy Biotechnology | Guangdong Marubi vs. CareRay Digital Medical |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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