Correlation Between Jiangsu Yanghe and Anhui Huaheng
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Jiangsu Yanghe and Anhui Huaheng 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 Jiangsu Yanghe with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Anhui Huaheng.
Diversification Opportunities for Jiangsu Yanghe and Anhui Huaheng
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Anhui is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Anhui Huaheng
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.56 times more return on investment than Anhui Huaheng. However, Jiangsu Yanghe Brewery is 1.78 times less risky than Anhui Huaheng. It trades about -0.25 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.55 per unit of risk. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (554.00) from holding Jiangsu Yanghe Brewery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Anhui Huaheng Biotec |
Jiangsu Yanghe and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Anhui Huaheng
The main advantage of trading using opposite Jiangsu Yanghe and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Anhui Huaheng 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 Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
| Anhui Huaheng vs. Dareway Software Co | Anhui Huaheng vs. Jiangsu GDK Biotechnology | Anhui Huaheng vs. Guangdong Marubi Biotechnology | Anhui Huaheng vs. Glodon Software Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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