Correlation Between GRG Banking and Anhui Huaren
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By analyzing existing cross correlation between GRG Banking Equipment and Anhui Huaren Health, you can compare the effects of market volatilities on GRG Banking and Anhui Huaren 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 Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and Anhui Huaren.
Diversification Opportunities for GRG Banking and Anhui Huaren
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between GRG and Anhui is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health 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 Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of GRG Banking i.e., GRG Banking and Anhui Huaren go up and down completely randomly.
Pair Corralation between GRG Banking and Anhui Huaren
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.98 times more return on investment than Anhui Huaren. However, GRG Banking Equipment is 1.02 times less risky than Anhui Huaren. It trades about -0.04 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.05 per unit of risk. If you would invest 1,159 in GRG Banking Equipment on October 14, 2024 and sell it today you would lose (99.00) from holding GRG Banking Equipment or give up 8.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. Anhui Huaren Health
Performance |
| Timeline |
| GRG Banking Equipment |
| Anhui Huaren Health |
GRG Banking and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and Anhui Huaren
The main advantage of trading using opposite GRG Banking and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking position performs unexpectedly, Anhui Huaren 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 Huaren will offset losses from the drop in Anhui Huaren's long position.| GRG Banking vs. Shanghai Sanyou Medical | GRG Banking vs. Guangdong Transtek Medical | GRG Banking vs. Dazhong Transportation Group | GRG Banking vs. Nanjing Vishee Medical |
| Anhui Huaren vs. Lecron Energy Saving | Anhui Huaren vs. Citic Guoan Wine | Anhui Huaren vs. GRG Banking Equipment | Anhui Huaren vs. Anhui Gujing Distillery |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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