Correlation Between Anhui Huilong and Jiangsu Yanghe
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Anhui Huilong and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Jiangsu Yanghe.
Diversification Opportunities for Anhui Huilong and Jiangsu Yanghe
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Jiangsu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Anhui Huilong and Jiangsu Yanghe
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.3 times more return on investment than Jiangsu Yanghe. However, Anhui Huilong is 1.3 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.08 per unit of risk. If you would invest 822.00 in Anhui Huilong Agricultural on October 19, 2024 and sell it today you would lose (284.00) from holding Anhui Huilong Agricultural or give up 34.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Jiangsu Yanghe Brewery |
Anhui Huilong and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Jiangsu Yanghe
The main advantage of trading using opposite Anhui Huilong and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Anhui Huilong vs. Heilongjiang Publishing Media | Anhui Huilong vs. Lootom Telcovideo Network | Anhui Huilong vs. Northern United Publishing | Anhui Huilong vs. Beijing Kaiwen Education |
| Jiangsu Yanghe vs. Kuang Chi Technologies | Jiangsu Yanghe vs. Fujian Longzhou Transportation | Jiangsu Yanghe vs. Hubeiyichang Transportation Group | Jiangsu Yanghe vs. Eyebright Medical 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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