Correlation Between Andon Health and Hubeiyichang Transportation
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By analyzing existing cross correlation between Andon Health Co and Hubeiyichang Transportation Group, you can compare the effects of market volatilities on Andon Health and Hubeiyichang Transportation 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 Andon Health with a short position of Hubeiyichang Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Hubeiyichang Transportation.
Diversification Opportunities for Andon Health and Hubeiyichang Transportation
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Hubeiyichang is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Hubeiyichang Transportation Gr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubeiyichang Transportation and Andon Health 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 Andon Health Co are associated (or correlated) with Hubeiyichang Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubeiyichang Transportation has no effect on the direction of Andon Health i.e., Andon Health and Hubeiyichang Transportation go up and down completely randomly.
Pair Corralation between Andon Health and Hubeiyichang Transportation
Assuming the 90 days trading horizon Andon Health Co is expected to under-perform the Hubeiyichang Transportation. In addition to that, Andon Health is 1.25 times more volatile than Hubeiyichang Transportation Group. It trades about -0.02 of its total potential returns per unit of risk. Hubeiyichang Transportation Group is currently generating about 0.01 per unit of volatility. If you would invest 538.00 in Hubeiyichang Transportation Group on September 3, 2024 and sell it today you would lose (2.00) from holding Hubeiyichang Transportation Group or give up 0.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Hubeiyichang Transportation Gr
Performance |
| Timeline |
| Andon Health |
| Hubeiyichang Transportation |
Andon Health and Hubeiyichang Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Hubeiyichang Transportation
The main advantage of trading using opposite Andon Health and Hubeiyichang Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health position performs unexpectedly, Hubeiyichang Transportation 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 Hubeiyichang Transportation will offset losses from the drop in Hubeiyichang Transportation's long position.| Andon Health vs. Chengdu Kanghua Biological | Andon Health vs. Beijing Wantai Biological | Andon Health vs. Suzhou Novoprotein Scientific | Andon Health vs. Aluminum Corp 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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