Correlation Between Anhui Huilong and Guangdong Jinming
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Guangdong Jinming Machinery, you can compare the effects of market volatilities on Anhui Huilong and Guangdong Jinming 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 Guangdong Jinming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Guangdong Jinming.
Diversification Opportunities for Anhui Huilong and Guangdong Jinming
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Guangdong Jinming Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jinming 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 Guangdong Jinming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jinming has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Guangdong Jinming go up and down completely randomly.
Pair Corralation between Anhui Huilong and Guangdong Jinming
Assuming the 90 days trading horizon Anhui Huilong is expected to generate 1.35 times less return on investment than Guangdong Jinming. But when comparing it to its historical volatility, Anhui Huilong Agricultural is 1.39 times less risky than Guangdong Jinming. It trades about 0.19 of its potential returns per unit of risk. Guangdong Jinming Machinery is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 445.00 in Guangdong Jinming Machinery on September 12, 2024 and sell it today you would earn a total of 240.00 from holding Guangdong Jinming Machinery or generate 53.93% 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. Guangdong Jinming Machinery
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Guangdong Jinming |
Anhui Huilong and Guangdong Jinming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Guangdong Jinming
The main advantage of trading using opposite Anhui Huilong and Guangdong Jinming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Guangdong Jinming 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 Guangdong Jinming will offset losses from the drop in Guangdong Jinming's long position.| Anhui Huilong vs. Sinomach Automobile Co | Anhui Huilong vs. Guangzhou Ruoyuchen Information | Anhui Huilong vs. Ningbo Ligong Online | Anhui Huilong vs. ButOne Information Corp |
| Guangdong Jinming vs. Agricultural Bank of | Guangdong Jinming vs. Industrial and Commercial | Guangdong Jinming vs. Bank of China | Guangdong Jinming vs. PetroChina Co Ltd |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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