Correlation Between Shandong Sanyuan and Wuhan Hvsen
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By analyzing existing cross correlation between Shandong Sanyuan Biotechnology and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Shandong Sanyuan and Wuhan Hvsen 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 Shandong Sanyuan with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sanyuan and Wuhan Hvsen.
Diversification Opportunities for Shandong Sanyuan and Wuhan Hvsen
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Wuhan is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sanyuan Biotechnology and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology and Shandong Sanyuan 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 Shandong Sanyuan Biotechnology are associated (or correlated) with Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Shandong Sanyuan i.e., Shandong Sanyuan and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Shandong Sanyuan and Wuhan Hvsen
Assuming the 90 days trading horizon Shandong Sanyuan Biotechnology is expected to generate 0.76 times more return on investment than Wuhan Hvsen. However, Shandong Sanyuan Biotechnology is 1.32 times less risky than Wuhan Hvsen. It trades about -0.03 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.05 per unit of risk. If you would invest 3,496 in Shandong Sanyuan Biotechnology on October 15, 2024 and sell it today you would lose (1,064) from holding Shandong Sanyuan Biotechnology or give up 30.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sanyuan Biotechnology vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Shandong Sanyuan Bio |
| Wuhan Hvsen Biotechnology |
Shandong Sanyuan and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sanyuan and Wuhan Hvsen
The main advantage of trading using opposite Shandong Sanyuan and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sanyuan position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Shandong Sanyuan vs. Shenyang Blue Silver | Shandong Sanyuan vs. Harvest Fund Management | Shandong Sanyuan vs. Guangdong Silvere Sci | Shandong Sanyuan vs. Tianjin Silvery Dragon |
| Wuhan Hvsen vs. Suzhou Weizhixiang Food | Wuhan Hvsen vs. Yankershop Food Co | Wuhan Hvsen vs. Kingsignal Technology Co | Wuhan Hvsen vs. Iat Automobile Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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