Correlation Between Wuhan Hvsen and Shuhua Sports
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Shuhua Sports Co, you can compare the effects of market volatilities on Wuhan Hvsen and Shuhua Sports 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 Shuhua Sports. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Shuhua Sports.
Diversification Opportunities for Wuhan Hvsen and Shuhua Sports
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Shuhua is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Shuhua Sports Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shuhua Sports 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 Shuhua Sports. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shuhua Sports has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Shuhua Sports go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Shuhua Sports
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Shuhua Sports. In addition to that, Wuhan Hvsen is 1.06 times more volatile than Shuhua Sports Co. It trades about -0.04 of its total potential returns per unit of risk. Shuhua Sports Co is currently generating about -0.01 per unit of volatility. If you would invest 1,031 in Shuhua Sports Co on September 28, 2024 and sell it today you would lose (219.00) from holding Shuhua Sports Co or give up 21.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Shuhua Sports Co
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Shuhua Sports |
Wuhan Hvsen and Shuhua Sports Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Shuhua Sports
The main advantage of trading using opposite Wuhan Hvsen and Shuhua Sports positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Shuhua Sports 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 Shuhua Sports will offset losses from the drop in Shuhua Sports' long position.| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
| Shuhua Sports vs. PetroChina Co Ltd | Shuhua Sports vs. China Mobile Limited | Shuhua Sports vs. CNOOC Limited | Shuhua Sports vs. Ping An Insurance |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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