Correlation Between Anhui Huilong and Longmaster Information
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Longmaster Information Tech, you can compare the effects of market volatilities on Anhui Huilong and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Longmaster Information.
Diversification Opportunities for Anhui Huilong and Longmaster Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Longmaster is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Longmaster Information go up and down completely randomly.
Pair Corralation between Anhui Huilong and Longmaster Information
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 0.76 times more return on investment than Longmaster Information. However, Anhui Huilong Agricultural is 1.31 times less risky than Longmaster Information. It trades about 0.03 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about 0.0 per unit of risk. If you would invest 594.00 in Anhui Huilong Agricultural on August 26, 2024 and sell it today you would earn a total of 57.00 from holding Anhui Huilong Agricultural or generate 9.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Longmaster Information Tech
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Longmaster Information |
Anhui Huilong and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Longmaster Information
The main advantage of trading using opposite Anhui Huilong and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information'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 |
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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