Correlation Between Anhui Huilong and Shenyang Huitian
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Anhui Huilong and Shenyang Huitian 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 Anhui Huilong with a short position of Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Shenyang Huitian.
Diversification Opportunities for Anhui Huilong and Shenyang Huitian
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Shenyang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal and Anhui Huilong 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 Anhui Huilong Agricultural are associated (or correlated) with Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Anhui Huilong and Shenyang Huitian
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.11 times more return on investment than Shenyang Huitian. However, Anhui Huilong is 1.11 times more volatile than Shenyang Huitian Thermal. It trades about 0.08 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.07 per unit of risk. If you would invest 491.00 in Anhui Huilong Agricultural on September 1, 2024 and sell it today you would earn a total of 146.00 from holding Anhui Huilong Agricultural or generate 29.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Shenyang Huitian Thermal |
Anhui Huilong and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Shenyang Huitian
The main advantage of trading using opposite Anhui Huilong and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
| Shenyang Huitian vs. Shandong Polymer Biochemicals | Shenyang Huitian vs. AUPU Home Style | Shenyang Huitian vs. Zoy Home Furnishing | Shenyang Huitian vs. Jahen Household Products |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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