Correlation Between Anhui Huilong and Tongxing Environmental
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Tongxing Environmental Protection, you can compare the effects of market volatilities on Anhui Huilong and Tongxing Environmental 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 Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Tongxing Environmental.
Diversification Opportunities for Anhui Huilong and Tongxing Environmental
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Tongxing is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental 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 Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Anhui Huilong and Tongxing Environmental
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.02 times more return on investment than Tongxing Environmental. However, Anhui Huilong is 1.02 times more volatile than Tongxing Environmental Protection. It trades about 0.19 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.19 per unit of risk. If you would invest 541.00 in Anhui Huilong Agricultural on September 1, 2024 and sell it today you would earn a total of 96.00 from holding Anhui Huilong Agricultural or generate 17.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Tongxing Environmental |
Anhui Huilong and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Tongxing Environmental
The main advantage of trading using opposite Anhui Huilong and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental'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 |
| Tongxing Environmental vs. Bank of China | Tongxing Environmental vs. Kweichow Moutai Co | Tongxing Environmental vs. PetroChina Co Ltd | Tongxing Environmental vs. Bank of Communications |
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.
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