Correlation Between Anhui Huilong and China Building
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By analyzing existing cross correlation between Anhui Huilong Agricultural and China Building Material, you can compare the effects of market volatilities on Anhui Huilong and China Building 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 China Building. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and China Building.
Diversification Opportunities for Anhui Huilong and China Building
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and China is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and China Building Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Building Material 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 China Building. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Building Material has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and China Building go up and down completely randomly.
Pair Corralation between Anhui Huilong and China Building
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the China Building. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huilong Agricultural is 1.58 times less risky than China Building. The stock trades about -0.53 of its potential returns per unit of risk. The China Building Material is currently generating about -0.32 of returns per unit of risk over similar time horizon. If you would invest 815.00 in China Building Material on October 12, 2024 and sell it today you would lose (135.00) from holding China Building Material or give up 16.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. China Building Material
Performance |
| Timeline |
| Anhui Huilong Agricu |
| China Building Material |
Anhui Huilong and China Building Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and China Building
The main advantage of trading using opposite Anhui Huilong and China Building positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, China Building 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 China Building will offset losses from the drop in China Building's long position.| Anhui Huilong vs. Ingenic Semiconductor | Anhui Huilong vs. Uroica Mining Safety | Anhui Huilong vs. Shengda Mining Co | Anhui Huilong vs. Thinkon Semiconductor Jinzhou |
| China Building vs. Gem Year Industrial Co | China Building vs. Suzhou Industrial Park | China Building vs. Anhui Huilong Agricultural | China Building vs. Masterwork Machinery |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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