Correlation Between Wuhan Hvsen and Qumei Furniture
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By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Qumei Furniture Group, you can compare the effects of market volatilities on Wuhan Hvsen and Qumei Furniture 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 Wuhan Hvsen with a short position of Qumei Furniture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Qumei Furniture.
Diversification Opportunities for Wuhan Hvsen and Qumei Furniture
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuhan and Qumei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Qumei Furniture Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qumei Furniture Group and Wuhan Hvsen 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 Wuhan Hvsen Biotechnology are associated (or correlated) with Qumei Furniture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qumei Furniture Group has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Qumei Furniture go up and down completely randomly.
Pair Corralation between Wuhan Hvsen and Qumei Furniture
Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to generate 0.96 times more return on investment than Qumei Furniture. However, Wuhan Hvsen Biotechnology is 1.04 times less risky than Qumei Furniture. It trades about 0.11 of its potential returns per unit of risk. Qumei Furniture Group is currently generating about 0.09 per unit of risk. If you would invest 883.00 in Wuhan Hvsen Biotechnology on September 26, 2024 and sell it today you would earn a total of 191.00 from holding Wuhan Hvsen Biotechnology or generate 21.63% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Wuhan Hvsen Biotechnology vs. Qumei Furniture Group
Performance |
Timeline |
Wuhan Hvsen Biotechnology |
Qumei Furniture Group |
Wuhan Hvsen and Qumei Furniture Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Wuhan Hvsen and Qumei Furniture
The main advantage of trading using opposite Wuhan Hvsen and Qumei Furniture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Qumei Furniture 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 Qumei Furniture will offset losses from the drop in Qumei Furniture's long position.Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. Agricultural Bank of | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China |
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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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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