Correlation Between North Huajin and Huasi Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between North Huajin Chemical and Huasi Agricultural Development, you can compare the effects of market volatilities on North Huajin and Huasi Agricultural 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 North Huajin with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Huasi Agricultural.
Diversification Opportunities for North Huajin and Huasi Agricultural
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between North and Huasi is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural and North Huajin 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 North Huajin Chemical are associated (or correlated) with Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of North Huajin i.e., North Huajin and Huasi Agricultural go up and down completely randomly.
Pair Corralation between North Huajin and Huasi Agricultural
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Huasi Agricultural. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 2.32 times less risky than Huasi Agricultural. The stock trades about -0.14 of its potential returns per unit of risk. The Huasi Agricultural Development is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 429.00 in Huasi Agricultural Development on September 29, 2024 and sell it today you would lose (30.00) from holding Huasi Agricultural Development or give up 6.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Huasi Agricultural Development
Performance |
| Timeline |
| North Huajin Chemical |
| Huasi Agricultural |
North Huajin and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Huasi Agricultural
The main advantage of trading using opposite North Huajin and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| North Huajin vs. Qtone Education Group | North Huajin vs. Zhangjiagang Freetrade Science | North Huajin vs. Beijing Kaiwen Education | North Huajin vs. Gansu Huangtai Wine marketing |
| Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Bank of China | Huasi Agricultural vs. China Construction Bank |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |