Correlation Between Gansu Huangtai and Anhui Huilong
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Gansu Huangtai and Anhui Huilong 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 Gansu Huangtai with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Anhui Huilong.
Diversification Opportunities for Gansu Huangtai and Anhui Huilong
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gansu and Anhui is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Gansu Huangtai 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 Gansu Huangtai Wine marketing are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Anhui Huilong go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Anhui Huilong
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 2.81 times more return on investment than Anhui Huilong. However, Gansu Huangtai is 2.81 times more volatile than Anhui Huilong Agricultural. It trades about -0.04 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.44 per unit of risk. If you would invest 1,734 in Gansu Huangtai Wine marketing on October 16, 2024 and sell it today you would lose (123.00) from holding Gansu Huangtai Wine marketing or give up 7.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Anhui Huilong Agricu |
Gansu Huangtai and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Anhui Huilong
The main advantage of trading using opposite Gansu Huangtai and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai position performs unexpectedly, Anhui Huilong 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 Huilong will offset losses from the drop in Anhui Huilong's long position.| Gansu Huangtai vs. Hubei Forbon Technology | Gansu Huangtai vs. Hongrun Construction Group | Gansu Huangtai vs. Allied Machinery Co | Gansu Huangtai vs. Peoples Insurance of |
| Anhui Huilong vs. Great Sun Foods Co | Anhui Huilong vs. Suzhou Weizhixiang Food | Anhui Huilong vs. Hangzhou Gaoxin Rubber | Anhui Huilong vs. Malion New Materials |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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