Correlation Between Anhui Huilong and Gansu Huangtai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huilong Agricultural and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Anhui Huilong and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Gansu Huangtai.
Diversification Opportunities for Anhui Huilong and Gansu Huangtai
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Gansu is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Anhui Huilong and Gansu Huangtai
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Gansu Huangtai. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huilong Agricultural is 1.44 times less risky than Gansu Huangtai. The stock trades about -0.03 of its potential returns per unit of risk. The Gansu Huangtai Wine marketing is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,868 in Gansu Huangtai Wine marketing on October 29, 2024 and sell it today you would lose (294.00) from holding Gansu Huangtai Wine marketing or give up 15.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Gansu Huangtai Wine |
Anhui Huilong and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Gansu Huangtai
The main advantage of trading using opposite Anhui Huilong and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai'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 |
| Gansu Huangtai vs. Tangel Publishing | Gansu Huangtai vs. Heilongjiang Publishing Media | Gansu Huangtai vs. Youyou Foods Co | Gansu Huangtai vs. Xinhua Winshare Publishing |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |