Correlation Between Jiangsu Broadcasting and Wuhan Hvsen
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By analyzing existing cross correlation between Jiangsu Broadcasting Cable and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Jiangsu Broadcasting 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 Jiangsu Broadcasting with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Broadcasting and Wuhan Hvsen.
Diversification Opportunities for Jiangsu Broadcasting and Wuhan Hvsen
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Wuhan is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting 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 Jiangsu Broadcasting Cable 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 Jiangsu Broadcasting i.e., Jiangsu Broadcasting and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Jiangsu Broadcasting and Wuhan Hvsen
Assuming the 90 days trading horizon Jiangsu Broadcasting Cable is expected to generate 0.96 times more return on investment than Wuhan Hvsen. However, Jiangsu Broadcasting Cable is 1.04 times less risky than Wuhan Hvsen. It trades about -0.11 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.22 per unit of risk. If you would invest 363.00 in Jiangsu Broadcasting Cable on October 11, 2024 and sell it today you would lose (44.00) from holding Jiangsu Broadcasting Cable or give up 12.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Broadcasting Cable vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Jiangsu Broadcasting |
| Wuhan Hvsen Biotechnology |
Jiangsu Broadcasting and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Broadcasting and Wuhan Hvsen
The main advantage of trading using opposite Jiangsu Broadcasting and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Broadcasting 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.| Jiangsu Broadcasting vs. Guangdong Xiongsu Technology | Jiangsu Broadcasting vs. ROPEOK Technology Group | Jiangsu Broadcasting vs. 360 Security Technology | Jiangsu Broadcasting vs. Songz Automobile Air |
| Wuhan Hvsen vs. Wuhan Yangtze Communication | Wuhan Hvsen vs. Jiangxi Hengda Hi Tech | Wuhan Hvsen vs. Giantec Semiconductor Corp | Wuhan Hvsen vs. Suzhou Oriental Semiconductor |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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