Correlation Between Anhui Huilong and Liuzhou Chemical
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Anhui Huilong and Liuzhou Chemical 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Liuzhou Chemical.
Diversification Opportunities for Anhui Huilong and Liuzhou Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Liuzhou is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou Chemical Industry 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Anhui Huilong and Liuzhou Chemical
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.85 times more return on investment than Liuzhou Chemical. However, Anhui Huilong is 1.85 times more volatile than Liuzhou Chemical Industry. It trades about 0.07 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.12 per unit of risk. If you would invest 593.00 in Anhui Huilong Agricultural on September 12, 2024 and sell it today you would earn a total of 31.00 from holding Anhui Huilong Agricultural or generate 5.23% 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. Liuzhou Chemical Industry
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Liuzhou Chemical Industry |
Anhui Huilong and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Liuzhou Chemical
The main advantage of trading using opposite Anhui Huilong and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Liuzhou Chemical 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical'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 |
| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Rongsheng Petrochemical Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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