Correlation Between V V and Huadong Medicine
Specify exactly 2 symbols:
By analyzing existing cross correlation between V V Food and Huadong Medicine Co, you can compare the effects of market volatilities on V V and Huadong Medicine 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 V V with a short position of Huadong Medicine. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Huadong Medicine.
Diversification Opportunities for V V and Huadong Medicine
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and Huadong is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Huadong Medicine Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huadong Medicine and V V 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 V V Food are associated (or correlated) with Huadong Medicine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huadong Medicine has no effect on the direction of V V i.e., V V and Huadong Medicine go up and down completely randomly.
Pair Corralation between V V and Huadong Medicine
Assuming the 90 days trading horizon V V Food is expected to generate 1.08 times more return on investment than Huadong Medicine. However, V V is 1.08 times more volatile than Huadong Medicine Co. It trades about 0.0 of its potential returns per unit of risk. Huadong Medicine Co is currently generating about -0.02 per unit of risk. If you would invest 312.00 in V V Food on October 16, 2024 and sell it today you would lose (26.00) from holding V V Food or give up 8.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Huadong Medicine Co
Performance |
| Timeline |
| V V Food |
| Huadong Medicine |
V V and Huadong Medicine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Huadong Medicine
The main advantage of trading using opposite V V and Huadong Medicine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Huadong Medicine 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 Huadong Medicine will offset losses from the drop in Huadong Medicine's long position.| V V vs. Elite Color Environmental | V V vs. Orinko Advanced Plastics | V V vs. China Building Material | V V vs. Shenzhen MYS Environmental |
| Huadong Medicine vs. Jiahe Foods Industry | Huadong Medicine vs. V V Food | Huadong Medicine vs. Shanghai Ziyan Foods | Huadong Medicine vs. Heilongjiang Transport Development |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |