Correlation Between Anhui Huilong and Henan Shuanghui
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huilong Agricultural and Henan Shuanghui Investment, you can compare the effects of market volatilities on Anhui Huilong and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Henan Shuanghui.
Diversification Opportunities for Anhui Huilong and Henan Shuanghui
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Henan is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Anhui Huilong and Henan Shuanghui
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.02 times more return on investment than Henan Shuanghui. However, Anhui Huilong is 1.02 times more volatile than Henan Shuanghui Investment. It trades about 0.16 of its potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.12 per unit of risk. If you would invest 525.00 in Anhui Huilong Agricultural on November 7, 2024 and sell it today you would earn a total of 20.00 from holding Anhui Huilong Agricultural or generate 3.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Anhui Huilong Agricu |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Henan Shuanghui Inve |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Insignificant
Anhui Huilong and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Henan Shuanghui
The main advantage of trading using opposite Anhui Huilong and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.The idea behind Anhui Huilong Agricultural and Henan Shuanghui Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Transaction History View history of all your transactions and understand their impact on performance |