Correlation Between Hunan Mendale and Anhui Jinhe
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By analyzing existing cross correlation between Hunan Mendale Hometextile and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Hunan Mendale and Anhui Jinhe 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 Hunan Mendale with a short position of Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Mendale and Anhui Jinhe.
Diversification Opportunities for Hunan Mendale and Anhui Jinhe
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hunan and Anhui is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Mendale Hometextile and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial and Hunan Mendale 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 Hunan Mendale Hometextile are associated (or correlated) with Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Hunan Mendale i.e., Hunan Mendale and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Hunan Mendale and Anhui Jinhe
Assuming the 90 days trading horizon Hunan Mendale Hometextile is expected to generate 3.78 times more return on investment than Anhui Jinhe. However, Hunan Mendale is 3.78 times more volatile than Anhui Jinhe Industrial. It trades about 0.17 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.1 per unit of risk. If you would invest 260.00 in Hunan Mendale Hometextile on October 26, 2024 and sell it today you would earn a total of 53.00 from holding Hunan Mendale Hometextile or generate 20.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Hunan Mendale Hometextile vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Hunan Mendale Hometextile |
| Anhui Jinhe Industrial |
Hunan Mendale and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Mendale and Anhui Jinhe
The main advantage of trading using opposite Hunan Mendale and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Mendale position performs unexpectedly, Anhui Jinhe 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 Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Hunan Mendale vs. Huizhou Speed Wireless | Hunan Mendale vs. Zhejiang Construction Investment | Hunan Mendale vs. Tangel Publishing | Hunan Mendale vs. Fibocom Wireless |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Shandong Gold 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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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