Correlation Between Wuhan Hvsen and Eastroc Beverage
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Eastroc Beverage Group, you can compare the effects of market volatilities on Wuhan Hvsen and Eastroc Beverage 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 Eastroc Beverage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Eastroc Beverage.
Diversification Opportunities for Wuhan Hvsen and Eastroc Beverage
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Eastroc is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Eastroc Beverage Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastroc Beverage 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 Eastroc Beverage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastroc Beverage has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Eastroc Beverage go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Eastroc Beverage
Assuming the 90 days trading horizon Wuhan Hvsen is expected to generate 7.02 times less return on investment than Eastroc Beverage. In addition to that, Wuhan Hvsen is 1.85 times more volatile than Eastroc Beverage Group. It trades about 0.01 of its total potential returns per unit of risk. Eastroc Beverage Group is currently generating about 0.1 per unit of volatility. If you would invest 14,112 in Eastroc Beverage Group on September 4, 2024 and sell it today you would earn a total of 7,748 from holding Eastroc Beverage Group or generate 54.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Eastroc Beverage Group
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Eastroc Beverage |
Wuhan Hvsen and Eastroc Beverage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Eastroc Beverage
The main advantage of trading using opposite Wuhan Hvsen and Eastroc Beverage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Eastroc Beverage 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 Eastroc Beverage will offset losses from the drop in Eastroc Beverage's long position.| Wuhan Hvsen vs. Kweichow Moutai Co | Wuhan Hvsen vs. Shenzhen Mindray Bio Medical | Wuhan Hvsen vs. Jiangsu Pacific Quartz | Wuhan Hvsen vs. G bits Network Technology |
| Eastroc Beverage vs. Shaanxi Energy Investment | Eastroc Beverage vs. China Express Airlines | Eastroc Beverage vs. Wuhan Hvsen Biotechnology | Eastroc Beverage vs. Ningbo MedicalSystem Biotechnology |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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