Correlation Between GRG Banking and Anhui Huaertai
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By analyzing existing cross correlation between GRG Banking Equipment and Anhui Huaertai Chemical, you can compare the effects of market volatilities on GRG Banking and Anhui Huaertai 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 GRG Banking with a short position of Anhui Huaertai. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Anhui Huaertai.
Diversification Opportunities for GRG Banking and Anhui Huaertai
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between GRG and Anhui is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Anhui Huaertai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaertai Chemical and GRG Banking 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 GRG Banking Equipment are associated (or correlated) with Anhui Huaertai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaertai Chemical has no effect on the direction of GRG Banking i.e., GRG Banking and Anhui Huaertai go up and down completely randomly.
Pair Corralation between GRG Banking and Anhui Huaertai
Assuming the 90 days trading horizon GRG Banking Equipment is expected to under-perform the Anhui Huaertai. But the stock apears to be less risky and, when comparing its historical volatility, GRG Banking Equipment is 2.83 times less risky than Anhui Huaertai. The stock trades about -0.19 of its potential returns per unit of risk. The Anhui Huaertai Chemical is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,163 in Anhui Huaertai Chemical on October 24, 2024 and sell it today you would lose (20.00) from holding Anhui Huaertai Chemical or give up 1.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
GRG Banking Equipment vs. Anhui Huaertai Chemical
Performance |
| Timeline |
| GRG Banking Equipment |
| Anhui Huaertai Chemical |
GRG Banking and Anhui Huaertai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Anhui Huaertai
The main advantage of trading using opposite GRG Banking and Anhui Huaertai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Anhui Huaertai 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 Huaertai will offset losses from the drop in Anhui Huaertai's long position.| GRG Banking vs. Runjian Communication Co | GRG Banking vs. FSPG Hi Tech Co | GRG Banking vs. Tianjin Hi Tech Development | GRG Banking vs. JS Corrugating Machinery |
| Anhui Huaertai vs. GRG Banking Equipment | Anhui Huaertai vs. JCHX Mining Management | Anhui Huaertai vs. Postal Savings Bank | Anhui Huaertai vs. Jiangxi Naipu Mining |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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