Correlation Between Luyin Investment and Wuhan Hvsen
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By analyzing existing cross correlation between Luyin Investment Group and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Luyin Investment 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 Luyin Investment with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Luyin Investment and Wuhan Hvsen.
Diversification Opportunities for Luyin Investment and Wuhan Hvsen
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Luyin and Wuhan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Luyin Investment Group 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 Luyin Investment 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 Luyin Investment Group 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 Luyin Investment i.e., Luyin Investment and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Luyin Investment and Wuhan Hvsen
Assuming the 90 days trading horizon Luyin Investment Group is expected to generate 0.71 times more return on investment than Wuhan Hvsen. However, Luyin Investment Group is 1.4 times less risky than Wuhan Hvsen. It trades about 0.01 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 618.00 in Luyin Investment Group on September 3, 2024 and sell it today you would lose (2.00) from holding Luyin Investment Group or give up 0.32% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Luyin Investment Group vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Luyin Investment |
| Wuhan Hvsen Biotechnology |
Luyin Investment and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Luyin Investment and Wuhan Hvsen
The main advantage of trading using opposite Luyin Investment and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Luyin Investment 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.| Luyin Investment vs. Hunan Investment Group | Luyin Investment vs. King Strong New Material | Luyin Investment vs. Super Dragon Engineering Plastics | Luyin Investment vs. Anhui Deli Household |
| Wuhan Hvsen vs. Chengdu Kanghua Biological | Wuhan Hvsen vs. Beijing Wantai Biological | Wuhan Hvsen vs. Suzhou Novoprotein Scientific | Wuhan Hvsen vs. Aluminum Corp of |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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