Correlation Between Anhui Huilong and Southern PublishingMedia
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Southern PublishingMedia Co, you can compare the effects of market volatilities on Anhui Huilong and Southern PublishingMedia 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 Southern PublishingMedia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Southern PublishingMedia.
Diversification Opportunities for Anhui Huilong and Southern PublishingMedia
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Southern is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Southern PublishingMedia Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern PublishingMedia 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 Southern PublishingMedia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern PublishingMedia has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Southern PublishingMedia go up and down completely randomly.
Pair Corralation between Anhui Huilong and Southern PublishingMedia
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Southern PublishingMedia. In addition to that, Anhui Huilong is 1.12 times more volatile than Southern PublishingMedia Co. It trades about -0.01 of its total potential returns per unit of risk. Southern PublishingMedia Co is currently generating about 0.27 per unit of volatility. If you would invest 1,500 in Southern PublishingMedia Co on November 3, 2024 and sell it today you would earn a total of 112.00 from holding Southern PublishingMedia Co or generate 7.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Southern PublishingMedia Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Southern PublishingMedia |
Anhui Huilong and Southern PublishingMedia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Southern PublishingMedia
The main advantage of trading using opposite Anhui Huilong and Southern PublishingMedia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Southern PublishingMedia 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 Southern PublishingMedia will offset losses from the drop in Southern PublishingMedia's long position.| Anhui Huilong vs. Sinomach Automobile Co | Anhui Huilong vs. New Hope Dairy | Anhui Huilong vs. Ningbo Fangzheng Automobile | Anhui Huilong vs. Yan Tai Shuang |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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