Correlation Between Shanghai Broadband and Wuhan Hvsen
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By analyzing existing cross correlation between Shanghai Broadband Technology and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Shanghai Broadband 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 Shanghai Broadband with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Wuhan Hvsen.
Diversification Opportunities for Shanghai Broadband and Wuhan Hvsen
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Wuhan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology 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 Shanghai Broadband 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 Shanghai Broadband Technology 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 Shanghai Broadband i.e., Shanghai Broadband and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Wuhan Hvsen
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Wuhan Hvsen. In addition to that, Shanghai Broadband is 1.19 times more volatile than Wuhan Hvsen Biotechnology. It trades about -0.17 of its total potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.18 per unit of volatility. If you would invest 1,183 in Wuhan Hvsen Biotechnology on September 28, 2024 and sell it today you would lose (130.00) from holding Wuhan Hvsen Biotechnology or give up 10.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Shanghai Broadband |
| Wuhan Hvsen Biotechnology |
Shanghai Broadband and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Wuhan Hvsen
The main advantage of trading using opposite Shanghai Broadband and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband 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.| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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