Correlation Between Wuhan Hvsen and Structure Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Wuhan Hvsen and Structure Therapeutics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Wuhan Hvsen and Structure Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wuhan Hvsen Biotechnology and Structure Therapeutics American, you can compare the effects of market volatilities on Wuhan Hvsen and Structure Therapeutics 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 Structure Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Hvsen and Structure Therapeutics.

Diversification Opportunities for Wuhan Hvsen and Structure Therapeutics

-0.49
  Correlation Coefficient

Very good diversification

The 3 months correlation between Wuhan and Structure is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Hvsen Biotechnology and Structure Therapeutics America in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Structure Therapeutics 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 Structure Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Structure Therapeutics has no effect on the direction of Wuhan Hvsen i.e., Wuhan Hvsen and Structure Therapeutics go up and down completely randomly.

Pair Corralation between Wuhan Hvsen and Structure Therapeutics

Assuming the 90 days trading horizon Wuhan Hvsen Biotechnology is expected to under-perform the Structure Therapeutics. But the stock apears to be less risky and, when comparing its historical volatility, Wuhan Hvsen Biotechnology is 7.91 times less risky than Structure Therapeutics. The stock trades about -0.14 of its potential returns per unit of risk. The Structure Therapeutics American is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  2,088  in Structure Therapeutics American on September 11, 2025 and sell it today you would earn a total of  4,641  from holding Structure Therapeutics American or generate 222.27% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy90.63%
ValuesDaily Returns

Wuhan Hvsen Biotechnology  vs.  Structure Therapeutics America

 Performance 
       Timeline  
Wuhan Hvsen Biotechnology 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Wuhan Hvsen Biotechnology has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in January 2026. The current disturbance may also be a sign of long term up-swing for the company investors.
Structure Therapeutics 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Structure Therapeutics American are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Structure Therapeutics reported solid returns over the last few months and may actually be approaching a breakup point.

Wuhan Hvsen and Structure Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Wuhan Hvsen and Structure Therapeutics

The main advantage of trading using opposite Wuhan Hvsen and Structure Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Hvsen position performs unexpectedly, Structure Therapeutics 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 Structure Therapeutics will offset losses from the drop in Structure Therapeutics' long position.
The idea behind Wuhan Hvsen Biotechnology and Structure Therapeutics American pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.

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