Correlation Between Huasi Agricultural and Long Yuan
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By analyzing existing cross correlation between Huasi Agricultural Development and Long Yuan Construction, you can compare the effects of market volatilities on Huasi Agricultural and Long Yuan 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 Huasi Agricultural with a short position of Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Long Yuan.
Diversification Opportunities for Huasi Agricultural and Long Yuan
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Long is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction and Huasi Agricultural 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 Huasi Agricultural Development are associated (or correlated) with Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Long Yuan go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Long Yuan
Assuming the 90 days trading horizon Huasi Agricultural is expected to generate 1.26 times less return on investment than Long Yuan. But when comparing it to its historical volatility, Huasi Agricultural Development is 1.28 times less risky than Long Yuan. It trades about 0.24 of its potential returns per unit of risk. Long Yuan Construction is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 247.00 in Long Yuan Construction on August 28, 2024 and sell it today you would earn a total of 143.00 from holding Long Yuan Construction or generate 57.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Long Yuan Construction
Performance |
| Timeline |
| Huasi Agricultural |
| Long Yuan Construction |
Huasi Agricultural and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Long Yuan
The main advantage of trading using opposite Huasi Agricultural and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. China Construction Bank | Huasi Agricultural vs. Bank of China |
| Long Yuan vs. Ming Yang Smart | Long Yuan vs. 159681 | Long Yuan vs. 159005 | Long Yuan vs. Loctek Ergonomic Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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