Correlation Between Wuhan Hvsen and Beijing Baolande
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Beijing Baolande Software, you can compare the effects of market volatilities on Wuhan Hvsen and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Beijing Baolande.
Diversification Opportunities for Wuhan Hvsen and Beijing Baolande
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Beijing is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Beijing Baolande go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Beijing Baolande
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 0.79 times more return on investment than Beijing Baolande. However, Wuhan Hvsen Biotechnology is 1.27 times less risky than Beijing Baolande. It trades about -0.03 of its potential returns per unit of risk. Beijing Baolande Software is currently generating about -0.14 per unit of risk. If you would invest 1,033 in Wuhan Hvsen Biotechnology on October 26, 2024 and sell it today you would lose (26.00) from holding Wuhan Hvsen Biotechnology or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Beijing Baolande Software
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Beijing Baolande Software |
Wuhan Hvsen and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Beijing Baolande
The main advantage of trading using opposite Wuhan Hvsen and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande'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 |
| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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