Correlation Between Wuhan Hvsen and Guangdong Cellwise
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Wuhan Hvsen and Guangdong Cellwise 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 Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Guangdong Cellwise.
Diversification Opportunities for Wuhan Hvsen and Guangdong Cellwise
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wuhan and Guangdong is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise 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 Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Guangdong Cellwise
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Guangdong Cellwise. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 1.32 times less risky than Guangdong Cellwise. The stock trades about -0.04 of its potential returns per unit of risk. The Guangdong Cellwise Microelectronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 4,219 in Guangdong Cellwise Microelectronics on September 28, 2024 and sell it today you would earn a total of 1,121 from holding Guangdong Cellwise Microelectronics or generate 26.57% 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. Guangdong Cellwise Microelectr
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Guangdong Cellwise |
Wuhan Hvsen and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Guangdong Cellwise
The main advantage of trading using opposite Wuhan Hvsen and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Guangdong Cellwise 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 Cellwise will offset losses from the drop in Guangdong Cellwise's 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 |
| Guangdong Cellwise vs. Jiangsu Jinling Sports | Guangdong Cellwise vs. Union Semiconductor Co | Guangdong Cellwise vs. Wuhan Hvsen Biotechnology | Guangdong Cellwise vs. Shuhua Sports 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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