Correlation Between Huasi Agricultural and Xingguang Agricultural
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By analyzing existing cross correlation between Huasi Agricultural Development and Xingguang Agricultural Mach, you can compare the effects of market volatilities on Huasi Agricultural and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huasi Agricultural and Xingguang Agricultural.
Diversification Opportunities for Huasi Agricultural and Xingguang Agricultural
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Huasi and Xingguang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Huasi Agricultural Development and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of Huasi Agricultural i.e., Huasi Agricultural and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between Huasi Agricultural and Xingguang Agricultural
Assuming the 90 days trading horizon Huasi Agricultural Development is expected to generate 0.94 times more return on investment than Xingguang Agricultural. However, Huasi Agricultural Development is 1.06 times less risky than Xingguang Agricultural. It trades about -0.06 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about -0.06 per unit of risk. If you would invest 419.00 in Huasi Agricultural Development on September 27, 2024 and sell it today you would lose (31.00) from holding Huasi Agricultural Development or give up 7.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huasi Agricultural Development vs. Xingguang Agricultural Mach
Performance |
| Timeline |
| Huasi Agricultural |
| Xingguang Agricultural |
Huasi Agricultural and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huasi Agricultural and Xingguang Agricultural
The main advantage of trading using opposite Huasi Agricultural and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huasi Agricultural position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural's long position.| Huasi Agricultural vs. Agricultural Bank of | Huasi Agricultural vs. Industrial and Commercial | Huasi Agricultural vs. Bank of China | Huasi Agricultural vs. China Construction Bank |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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