Correlation Between China National and Wuhan Hvsen
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By analyzing existing cross correlation between China National Software and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on China National 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 National with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and Wuhan Hvsen.
Diversification Opportunities for China National and Wuhan Hvsen
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Wuhan is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China National Software 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 National 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 National Software 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 National i.e., China National and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between China National and Wuhan Hvsen
Assuming the 90 days trading horizon China National Software is expected to generate 0.93 times more return on investment than Wuhan Hvsen. However, China National Software is 1.07 times less risky than Wuhan Hvsen. It trades about 0.04 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 3,477 in China National Software on October 30, 2024 and sell it today you would earn a total of 846.00 from holding China National Software or generate 24.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| China National Software |
| Wuhan Hvsen Biotechnology |
China National and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and Wuhan Hvsen
The main advantage of trading using opposite China National and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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 National vs. Shandong Hi Speed RoadBridge | China National vs. Hubeiyichang Transportation Group | China National vs. Wuxi Xuelang Environmental | China National vs. Chengdu Xinzhu RoadBridge |
| Wuhan Hvsen vs. Guangdong Transtek Medical | Wuhan Hvsen vs. Zhongzhu Medical Holdings | Wuhan Hvsen vs. Cansino Biologics | Wuhan Hvsen vs. Kontour Medical 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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