Correlation Between Wuhan Hvsen and Anhui Huaheng
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Wuhan Hvsen and Anhui Huaheng 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 Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Anhui Huaheng.
Diversification Opportunities for Wuhan Hvsen and Anhui Huaheng
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wuhan and Anhui is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec 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 Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Anhui Huaheng
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Anhui Huaheng. In addition to that, Wuhan Hvsen is 1.22 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.18 of its total potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.17 per unit of volatility. If you would invest 3,555 in Anhui Huaheng Biotechnology on September 28, 2024 and sell it today you would lose (294.00) from holding Anhui Huaheng Biotechnology or give up 8.27% 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. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Wuhan Hvsen Biotechnology |
| Anhui Huaheng Biotec |
Wuhan Hvsen and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Hvsen and Anhui Huaheng
The main advantage of trading using opposite Wuhan Hvsen and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng'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 |
| Anhui Huaheng vs. Industrial and Commercial | Anhui Huaheng vs. Agricultural Bank of | Anhui Huaheng vs. China Construction Bank | Anhui Huaheng vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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