Correlation Between Ningbo Boway and Wuhan Hvsen
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By analyzing existing cross correlation between Ningbo Boway Alloy and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Ningbo Boway 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 Ningbo Boway with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Boway and Wuhan Hvsen.
Diversification Opportunities for Ningbo Boway and Wuhan Hvsen
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and Wuhan is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Boway Alloy 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 Ningbo Boway 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 Ningbo Boway Alloy 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 Ningbo Boway i.e., Ningbo Boway and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Ningbo Boway and Wuhan Hvsen
Assuming the 90 days trading horizon Ningbo Boway Alloy is expected to generate 1.49 times more return on investment than Wuhan Hvsen. However, Ningbo Boway is 1.49 times more volatile than Wuhan Hvsen Biotechnology. It trades about 0.08 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.57 per unit of risk. If you would invest 1,769 in Ningbo Boway Alloy on October 16, 2024 and sell it today you would earn a total of 85.00 from holding Ningbo Boway Alloy or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Boway Alloy vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Ningbo Boway Alloy |
| Wuhan Hvsen Biotechnology |
Ningbo Boway and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Boway and Wuhan Hvsen
The main advantage of trading using opposite Ningbo Boway and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Boway 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.| Ningbo Boway vs. Zijin Mining Group | Ningbo Boway vs. Wanhua Chemical Group | Ningbo Boway vs. Baoshan Iron Steel | Ningbo Boway vs. Shandong Gold Mining |
| Wuhan Hvsen vs. China National Software | Wuhan Hvsen vs. Jiangsu Hoperun Software | Wuhan Hvsen vs. Shanghai Rongtai Health | Wuhan Hvsen vs. Anhui Huaren Health |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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