Correlation Between Shanghai Yanpu and Wuhan Hvsen
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By analyzing existing cross correlation between Shanghai Yanpu Metal and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and Wuhan Hvsen.
Diversification Opportunities for Shanghai Yanpu and Wuhan Hvsen
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Wuhan is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and Wuhan Hvsen
Assuming the 90 days trading horizon Shanghai Yanpu is expected to generate 1.01 times less return on investment than Wuhan Hvsen. But when comparing it to its historical volatility, Shanghai Yanpu Metal is 1.05 times less risky than Wuhan Hvsen. It trades about 0.09 of its potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 986.00 in Wuhan Hvsen Biotechnology on September 13, 2024 and sell it today you would earn a total of 281.00 from holding Wuhan Hvsen Biotechnology or generate 28.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| Wuhan Hvsen Biotechnology |
Shanghai Yanpu and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and Wuhan Hvsen
The main advantage of trading using opposite Shanghai Yanpu and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. BeiGene | Shanghai Yanpu vs. Kweichow Moutai Co | Shanghai Yanpu vs. Beijing Roborock Technology | Shanghai Yanpu vs. G bits Network Technology |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China | Wuhan Hvsen vs. Agricultural Bank 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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