Correlation Between State Grid and Wuhan Hvsen
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By analyzing existing cross correlation between State Grid InformationCommunication and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and Wuhan Hvsen.
Diversification Opportunities for State Grid and Wuhan Hvsen
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and Wuhan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between State Grid and Wuhan Hvsen
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, State Grid InformationCommunication is 1.74 times less risky than Wuhan Hvsen. The stock trades about -0.22 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,083 in Wuhan Hvsen Biotechnology on October 23, 2024 and sell it today you would lose (52.00) from holding Wuhan Hvsen Biotechnology or give up 4.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| State Grid Informati |
| Wuhan Hvsen Biotechnology |
State Grid and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and Wuhan Hvsen
The main advantage of trading using opposite State Grid and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Zhongshan Public Utilities | State Grid vs. Jiangsu Financial Leasing | State Grid vs. Shenwu Energy Saving | State Grid vs. China Everbright Bank |
| Wuhan Hvsen vs. Eastern Air Logistics | Wuhan Hvsen vs. Harbin Air Conditioning | Wuhan Hvsen vs. Sublime China Information | Wuhan Hvsen vs. Cultural Investment Holdings |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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