Correlation Between Anhui Huilong and Guangzhou Jointas
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huilong Agricultural and Guangzhou Jointas Chemical, you can compare the effects of market volatilities on Anhui Huilong and Guangzhou Jointas 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 Guangzhou Jointas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Guangzhou Jointas.
Diversification Opportunities for Anhui Huilong and Guangzhou Jointas
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Guangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Guangzhou Jointas Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jointas 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 Guangzhou Jointas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jointas has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Guangzhou Jointas go up and down completely randomly.
Pair Corralation between Anhui Huilong and Guangzhou Jointas
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Guangzhou Jointas. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huilong Agricultural is 1.94 times less risky than Guangzhou Jointas. The stock trades about -0.23 of its potential returns per unit of risk. The Guangzhou Jointas Chemical is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 547.00 in Guangzhou Jointas Chemical on September 29, 2024 and sell it today you would lose (32.00) from holding Guangzhou Jointas Chemical or give up 5.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Guangzhou Jointas Chemical
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Guangzhou Jointas |
Anhui Huilong and Guangzhou Jointas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Guangzhou Jointas
The main advantage of trading using opposite Anhui Huilong and Guangzhou Jointas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Guangzhou Jointas 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 Guangzhou Jointas will offset losses from the drop in Guangzhou Jointas' 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 |
| Guangzhou Jointas vs. Jiaozuo Wanfang Aluminum | Guangzhou Jointas vs. Ye Chiu Metal | Guangzhou Jointas vs. Western Metal Materials | Guangzhou Jointas vs. Tongyu Communication |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |