Correlation Between China Sports and Wuhan Hvsen
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By analyzing existing cross correlation between China Sports Industry and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and Wuhan Hvsen.
Diversification Opportunities for China Sports and Wuhan Hvsen
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Wuhan is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry 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 China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between China Sports and Wuhan Hvsen
Assuming the 90 days trading horizon China Sports Industry is expected to generate 0.83 times more return on investment than Wuhan Hvsen. However, China Sports Industry is 1.2 times less risky than Wuhan Hvsen. It trades about 0.0 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 862.00 in China Sports Industry on October 15, 2024 and sell it today you would lose (132.00) from holding China Sports Industry or give up 15.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| China Sports Industry |
| Wuhan Hvsen Biotechnology |
China Sports and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and Wuhan Hvsen
The main advantage of trading using opposite China Sports and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Guangzhou Haozhi Industrial | China Sports vs. Runjian Communication Co | China Sports vs. Guangxi Wuzhou Communications | China Sports vs. Guangzhou Seagull Kitchen |
| 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 Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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