Correlation Between Beijing Wantai and Wuhan Hvsen
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By analyzing existing cross correlation between Beijing Wantai Biological and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Beijing Wantai 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 Beijing Wantai with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Wuhan Hvsen.
Diversification Opportunities for Beijing Wantai and Wuhan Hvsen
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Beijing and Wuhan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological 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 Beijing Wantai 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 Beijing Wantai Biological 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 Beijing Wantai i.e., Beijing Wantai and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Beijing Wantai and Wuhan Hvsen
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to generate 1.05 times more return on investment than Wuhan Hvsen. However, Beijing Wantai is 1.05 times more volatile than Wuhan Hvsen Biotechnology. It trades about -0.01 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about -0.03 per unit of risk. If you would invest 9,992 in Beijing Wantai Biological on September 3, 2024 and sell it today you would lose (2,698) from holding Beijing Wantai Biological or give up 27.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Beijing Wantai Biological |
| Wuhan Hvsen Biotechnology |
Beijing Wantai and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Wuhan Hvsen
The main advantage of trading using opposite Beijing Wantai and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai 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.| Beijing Wantai vs. Cofoe Medical Technology | Beijing Wantai vs. Guangzhou Boji Medical | Beijing Wantai vs. Qingdao Baheal Medical | Beijing Wantai vs. Double Medical Technology |
| 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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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