Correlation Between Hengli Industrial and Anhui Huaheng
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By analyzing existing cross correlation between Hengli Industrial Development and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Hengli Industrial and Anhui Huaheng 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 Hengli Industrial with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Anhui Huaheng.
Diversification Opportunities for Hengli Industrial and Anhui Huaheng
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengli and Anhui is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Hengli Industrial and Anhui Huaheng
Assuming the 90 days trading horizon Hengli Industrial Development is expected to generate 0.75 times more return on investment than Anhui Huaheng. However, Hengli Industrial Development is 1.33 times less risky than Anhui Huaheng. It trades about 0.11 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 170.00 in Hengli Industrial Development on October 25, 2024 and sell it today you would earn a total of 71.00 from holding Hengli Industrial Development or generate 41.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Hengli Industrial |
| Anhui Huaheng Biotec |
Hengli Industrial and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Anhui Huaheng
The main advantage of trading using opposite Hengli Industrial and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Hengli Industrial vs. PetroChina Co Ltd | Hengli Industrial vs. Gansu Jiu Steel | Hengli Industrial vs. Ming Yang Smart | Hengli Industrial vs. Aba Chemicals Corp |
| Anhui Huaheng vs. Holitech Technology Co | Anhui Huaheng vs. Kangping Technology Co | Anhui Huaheng vs. Olympic Circuit Technology | Anhui Huaheng vs. HanS Laser Tech |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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