Correlation Between Anhui Huaertai and Northern United
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By analyzing existing cross correlation between Anhui Huaertai Chemical and Northern United Publishing, you can compare the effects of market volatilities on Anhui Huaertai and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaertai and Northern United.
Diversification Opportunities for Anhui Huaertai and Northern United
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Northern is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaertai Chemical and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Anhui Huaertai i.e., Anhui Huaertai and Northern United go up and down completely randomly.
Pair Corralation between Anhui Huaertai and Northern United
Assuming the 90 days trading horizon Anhui Huaertai Chemical is expected to generate 1.24 times more return on investment than Northern United. However, Anhui Huaertai is 1.24 times more volatile than Northern United Publishing. It trades about 0.3 of its potential returns per unit of risk. Northern United Publishing is currently generating about 0.25 per unit of risk. If you would invest 980.00 in Anhui Huaertai Chemical on September 4, 2024 and sell it today you would earn a total of 188.00 from holding Anhui Huaertai Chemical or generate 19.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaertai Chemical vs. Northern United Publishing
Performance |
| Timeline |
| Anhui Huaertai Chemical |
| Northern United Publ |
Anhui Huaertai and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaertai and Northern United
The main advantage of trading using opposite Anhui Huaertai and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaertai position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Anhui Huaertai vs. Northern United Publishing | Anhui Huaertai vs. XinJiang GuoTong Pipeline | Anhui Huaertai vs. Shandong Publishing Media | Anhui Huaertai vs. China Publishing Media |
| Northern United vs. Ming Yang Smart | Northern United vs. 159681 | Northern United vs. 159005 | Northern United vs. 516220 |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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