Correlation Between Anhui Huaertai and Zhejiang JIULI
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By analyzing existing cross correlation between Anhui Huaertai Chemical and Zhejiang JIULI Hi tech, you can compare the effects of market volatilities on Anhui Huaertai and Zhejiang JIULI 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 Anhui Huaertai with a short position of Zhejiang JIULI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaertai and Zhejiang JIULI.
Diversification Opportunities for Anhui Huaertai and Zhejiang JIULI
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Zhejiang is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaertai Chemical and Zhejiang JIULI Hi tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang JIULI Hi and Anhui Huaertai 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 Anhui Huaertai Chemical are associated (or correlated) with Zhejiang JIULI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang JIULI Hi has no effect on the direction of Anhui Huaertai i.e., Anhui Huaertai and Zhejiang JIULI go up and down completely randomly.
Pair Corralation between Anhui Huaertai and Zhejiang JIULI
Assuming the 90 days trading horizon Anhui Huaertai Chemical is expected to generate 1.08 times more return on investment than Zhejiang JIULI. However, Anhui Huaertai is 1.08 times more volatile than Zhejiang JIULI Hi tech. It trades about 0.1 of its potential returns per unit of risk. Zhejiang JIULI Hi tech is currently generating about -0.33 per unit of risk. If you would invest 1,036 in Anhui Huaertai Chemical on November 29, 2024 and sell it today you would earn a total of 22.00 from holding Anhui Huaertai Chemical or generate 2.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Anhui Huaertai Chemical vs. Zhejiang JIULI Hi tech
Performance |
| Timeline |
| Anhui Huaertai Chemical |
| Zhejiang JIULI Hi |
Anhui Huaertai and Zhejiang JIULI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaertai and Zhejiang JIULI
The main advantage of trading using opposite Anhui Huaertai and Zhejiang JIULI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaertai position performs unexpectedly, Zhejiang JIULI 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 Zhejiang JIULI will offset losses from the drop in Zhejiang JIULI's long position.| Anhui Huaertai vs. Uroica Mining Safety | Anhui Huaertai vs. Lutian Machinery Co | Anhui Huaertai vs. Zhengzhou Coal Mining | Anhui Huaertai vs. Nanxing Furniture Machinery |
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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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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