Correlation Between Hua Xia and Wuhan Hvsen
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By analyzing existing cross correlation between Hua Xia Bank and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and Wuhan Hvsen.
Diversification Opportunities for Hua Xia and Wuhan Hvsen
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hua and Wuhan is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank 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 Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Hua Xia and Wuhan Hvsen
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.45 times more return on investment than Wuhan Hvsen. However, Hua Xia Bank is 2.21 times less risky than Wuhan Hvsen. It trades about 0.26 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.24 per unit of risk. If you would invest 744.00 in Hua Xia Bank on September 29, 2024 and sell it today you would earn a total of 51.00 from holding Hua Xia Bank or generate 6.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hua Xia Bank vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Hua Xia Bank |
| Wuhan Hvsen Biotechnology |
Hua Xia and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and Wuhan Hvsen
The main advantage of trading using opposite Hua Xia and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Kweichow Moutai Co | Hua Xia vs. Contemporary Amperex Technology | Hua Xia vs. G bits Network Technology | Hua Xia vs. BYD Co Ltd |
| Wuhan Hvsen vs. Dook Media Group | Wuhan Hvsen vs. Northern United Publishing | Wuhan Hvsen vs. Chinese Universe Publishing | Wuhan Hvsen vs. Qtone Education Group |
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 Stocks Directory module to find actively traded stocks across global markets.
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