Correlation Between Anhui Huaertai and Eastern Communications
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By analyzing existing cross correlation between Anhui Huaertai Chemical and Eastern Communications Co, you can compare the effects of market volatilities on Anhui Huaertai and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaertai and Eastern Communications.
Diversification Opportunities for Anhui Huaertai and Eastern Communications
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Eastern is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaertai Chemical and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Anhui Huaertai i.e., Anhui Huaertai and Eastern Communications go up and down completely randomly.
Pair Corralation between Anhui Huaertai and Eastern Communications
Assuming the 90 days trading horizon Anhui Huaertai Chemical is expected to generate 1.48 times more return on investment than Eastern Communications. However, Anhui Huaertai is 1.48 times more volatile than Eastern Communications Co. It trades about 0.04 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.03 per unit of risk. If you would invest 1,189 in Anhui Huaertai Chemical on September 15, 2024 and sell it today you would earn a total of 300.00 from holding Anhui Huaertai Chemical or generate 25.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Anhui Huaertai Chemical vs. Eastern Communications Co
Performance |
| Timeline |
| Anhui Huaertai Chemical |
| Eastern Communications |
Anhui Huaertai and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaertai and Eastern Communications
The main advantage of trading using opposite Anhui Huaertai and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaertai position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Anhui Huaertai vs. Eastern Communications Co | Anhui Huaertai vs. Jilin Jlu Communication | Anhui Huaertai vs. Guangdong Shenglu Telecommunication | Anhui Huaertai vs. Fiberhome Telecommunication Technologies |
| Eastern Communications vs. Industrial and Commercial | Eastern Communications vs. China Construction Bank | Eastern Communications vs. Bank of China | Eastern Communications vs. Agricultural Bank of |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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