Correlation Between Anhui Huaren and Wuhan Hvsen
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By analyzing existing cross correlation between Anhui Huaren Health and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Anhui Huaren 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 Anhui Huaren with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Wuhan Hvsen.
Diversification Opportunities for Anhui Huaren and Wuhan Hvsen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Wuhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health 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 Anhui Huaren 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 Anhui Huaren Health 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 Anhui Huaren i.e., Anhui Huaren and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Anhui Huaren and Wuhan Hvsen
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.13 times less risky than Wuhan Hvsen. The stock trades about -0.03 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,420 in Wuhan Hvsen Biotechnology on October 30, 2024 and sell it today you would lose (383.00) from holding Wuhan Hvsen Biotechnology or give up 26.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Anhui Huaren Health |
| Wuhan Hvsen Biotechnology |
Anhui Huaren and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Wuhan Hvsen
The main advantage of trading using opposite Anhui Huaren and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren 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.| Anhui Huaren vs. Cloud Live Technology | Anhui Huaren vs. Nanjing Putian Telecommunications | Anhui Huaren vs. Shenzhen Coship Electronics | Anhui Huaren vs. Shenzhen Hifuture Electric |
| Wuhan Hvsen vs. Guangdong Transtek Medical | Wuhan Hvsen vs. Zhongzhu Medical Holdings | Wuhan Hvsen vs. Cansino Biologics | Wuhan Hvsen vs. Kontour Medical 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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