Correlation Between Longjian Road and Wuhan Hvsen
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By analyzing existing cross correlation between Longjian Road Bridge and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Longjian Road 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 Longjian Road with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longjian Road and Wuhan Hvsen.
Diversification Opportunities for Longjian Road and Wuhan Hvsen
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Longjian and Wuhan is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Longjian Road Bridge 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 Longjian Road 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 Longjian Road Bridge 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 Longjian Road i.e., Longjian Road and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Longjian Road and Wuhan Hvsen
Assuming the 90 days trading horizon Longjian Road Bridge is expected to under-perform the Wuhan Hvsen. But the stock apears to be less risky and, when comparing its historical volatility, Longjian Road Bridge is 1.04 times less risky than Wuhan Hvsen. The stock trades about -0.4 of its potential returns per unit of risk. The Wuhan Hvsen Biotechnology is currently generating about -0.3 of returns per unit of risk over similar time horizon. If you would invest 1,262 in Wuhan Hvsen Biotechnology on October 17, 2024 and sell it today you would lose (265.00) from holding Wuhan Hvsen Biotechnology or give up 21.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longjian Road Bridge vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Longjian Road Bridge |
| Wuhan Hvsen Biotechnology |
Longjian Road and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longjian Road and Wuhan Hvsen
The main advantage of trading using opposite Longjian Road and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longjian Road 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.| Longjian Road vs. Runjian Communication Co | Longjian Road vs. Allied Machinery Co | Longjian Road vs. Fibocom Wireless | Longjian Road vs. Jiangsu Financial Leasing |
| Wuhan Hvsen vs. Zhengzhou Qianweiyangchu Food | Wuhan Hvsen vs. Sichuan Fulin Transportation | Wuhan Hvsen vs. Guilin Seamild Foods | Wuhan Hvsen vs. Longjian Road Bridge |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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