Correlation Between Chinese Universe and Hunan Fangsheng
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By analyzing existing cross correlation between Chinese Universe Publishing and Hunan Fangsheng Pharm, you can compare the effects of market volatilities on Chinese Universe and Hunan Fangsheng 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 Chinese Universe with a short position of Hunan Fangsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Universe and Hunan Fangsheng.
Diversification Opportunities for Chinese Universe and Hunan Fangsheng
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Chinese and Hunan is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Universe Publishing and Hunan Fangsheng Pharm in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Fangsheng Pharm and Chinese Universe 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 Chinese Universe Publishing are associated (or correlated) with Hunan Fangsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Fangsheng Pharm has no effect on the direction of Chinese Universe i.e., Chinese Universe and Hunan Fangsheng go up and down completely randomly.
Pair Corralation between Chinese Universe and Hunan Fangsheng
Assuming the 90 days trading horizon Chinese Universe Publishing is expected to under-perform the Hunan Fangsheng. But the stock apears to be less risky and, when comparing its historical volatility, Chinese Universe Publishing is 1.01 times less risky than Hunan Fangsheng. The stock trades about -0.04 of its potential returns per unit of risk. The Hunan Fangsheng Pharm is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,088 in Hunan Fangsheng Pharm on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Hunan Fangsheng Pharm or generate 3.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Universe Publishing vs. Hunan Fangsheng Pharm
Performance |
| Timeline |
| Chinese Universe Pub |
| Hunan Fangsheng Pharm |
Chinese Universe and Hunan Fangsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Universe and Hunan Fangsheng
The main advantage of trading using opposite Chinese Universe and Hunan Fangsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Universe position performs unexpectedly, Hunan Fangsheng 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 Hunan Fangsheng will offset losses from the drop in Hunan Fangsheng's long position.| Chinese Universe vs. Kweichow Moutai Co | Chinese Universe vs. Shenzhen Mindray Bio Medical | Chinese Universe vs. G bits Network Technology | Chinese Universe vs. Beijing Roborock Technology |
| Hunan Fangsheng vs. Chinese Universe Publishing | Hunan Fangsheng vs. Ping An Insurance | Hunan Fangsheng vs. Suzhou Douson Drilling | Hunan Fangsheng vs. Jiangsu Phoenix Publishing |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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