Correlation Between Wuhan Hvsen and JuneYao Dairy
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and JuneYao Dairy Co, you can compare the effects of market volatilities on Wuhan Hvsen and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and JuneYao Dairy.
Diversification Opportunities for Wuhan Hvsen and JuneYao Dairy
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and JuneYao is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and JuneYao Dairy
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the JuneYao Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.38 times less risky than JuneYao Dairy. The stock trades about -0.15 of its potential returns per unit of risk. The JuneYao Dairy Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 682.00 in JuneYao Dairy Co on October 30, 2024 and sell it today you would lose (97.00) from holding JuneYao Dairy Co or give up 14.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. JuneYao Dairy Co
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| JuneYao Dairy |
Wuhan Hvsen and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and JuneYao Dairy
The main advantage of trading using opposite Wuhan Hvsen and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.| Wuhan Hvsen vs. Guangdong Transtek Medical | Wuhan Hvsen vs. Zhongzhu Medical Holdings | Wuhan Hvsen vs. Cansino Biologics | Wuhan Hvsen vs. Kontour Medical Technology |
| JuneYao Dairy vs. Hunan Mendale Hometextile | JuneYao Dairy vs. DO Home Collection | JuneYao Dairy vs. Shanghai CEO Environmental | JuneYao Dairy vs. UE Furniture Co |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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