Correlation Between Wuhan Hvsen and Dow Jones
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Dow Jones Industrial, you can compare the effects of market volatilities on Wuhan Hvsen and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Dow Jones.
Diversification Opportunities for Wuhan Hvsen and Dow Jones
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Dow is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Dow Jones go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Dow Jones
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Dow Jones. In addition to that, Wuhan Hvsen is 3.22 times more volatile than Dow Jones Industrial. It trades about 0.0 of its total potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.08 per unit of volatility. If you would invest 4,237,436 in Dow Jones Industrial on October 24, 2024 and sell it today you would earn a total of 165,145 from holding Dow Jones Industrial or generate 3.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Dow Jones Industrial
Performance |
| Timeline |
Wuhan Hvsen and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Wuhan Hvsen Biotechnology
Pair trading matchups for Wuhan Hvsen
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Wuhan Hvsen and Dow Jones
The main advantage of trading using opposite Wuhan Hvsen and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Wuhan Hvsen vs. Senci Electric Machinery | Wuhan Hvsen vs. Hunan Tyen Machinery | Wuhan Hvsen vs. Masterwork Machinery | Wuhan Hvsen vs. Ningbo Construction Co |
| Dow Jones vs. Transocean | Dow Jones vs. Noble plc | Dow Jones vs. Evolution Gaming Group | Dow Jones vs. Addus HomeCare |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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