Correlation Between Cabio Biotech and Hunan Tyen
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By analyzing existing cross correlation between Cabio Biotech Wuhan and Hunan Tyen Machinery, you can compare the effects of market volatilities on Cabio Biotech and Hunan Tyen 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 Cabio Biotech with a short position of Hunan Tyen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cabio Biotech and Hunan Tyen.
Diversification Opportunities for Cabio Biotech and Hunan Tyen
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cabio and Hunan is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Cabio Biotech Wuhan and Hunan Tyen Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Tyen Machinery and Cabio Biotech 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 Cabio Biotech Wuhan are associated (or correlated) with Hunan Tyen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Tyen Machinery has no effect on the direction of Cabio Biotech i.e., Cabio Biotech and Hunan Tyen go up and down completely randomly.
Pair Corralation between Cabio Biotech and Hunan Tyen
Assuming the 90 days trading horizon Cabio Biotech Wuhan is expected to under-perform the Hunan Tyen. But the stock apears to be less risky and, when comparing its historical volatility, Cabio Biotech Wuhan is 1.39 times less risky than Hunan Tyen. The stock trades about -0.07 of its potential returns per unit of risk. The Hunan Tyen Machinery is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 514.00 in Hunan Tyen Machinery on October 30, 2024 and sell it today you would lose (6.00) from holding Hunan Tyen Machinery or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cabio Biotech Wuhan vs. Hunan Tyen Machinery
Performance |
| Timeline |
| Cabio Biotech Wuhan |
| Hunan Tyen Machinery |
Cabio Biotech and Hunan Tyen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cabio Biotech and Hunan Tyen
The main advantage of trading using opposite Cabio Biotech and Hunan Tyen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cabio Biotech position performs unexpectedly, Hunan Tyen 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 Hunan Tyen will offset losses from the drop in Hunan Tyen's long position.| Cabio Biotech vs. Railway Signal Communication | Cabio Biotech vs. BizConf Telecom Co | Cabio Biotech vs. Dongfeng Automobile Co | Cabio Biotech vs. Allwin Telecommunication Co |
| Hunan Tyen vs. Industrial and Commercial | Hunan Tyen vs. China Construction Bank | Hunan Tyen vs. Bank of China | Hunan Tyen 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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