Correlation Between Anhui Huilong and Thinkingdom Media
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Thinkingdom Media Group, you can compare the effects of market volatilities on Anhui Huilong and Thinkingdom Media 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 Thinkingdom Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Thinkingdom Media.
Diversification Opportunities for Anhui Huilong and Thinkingdom Media
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Thinkingdom is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Thinkingdom Media Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkingdom Media 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 Thinkingdom Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkingdom Media has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Thinkingdom Media go up and down completely randomly.
Pair Corralation between Anhui Huilong and Thinkingdom Media
Assuming the 90 days trading horizon Anhui Huilong is expected to generate 1.8 times less return on investment than Thinkingdom Media. In addition to that, Anhui Huilong is 1.12 times more volatile than Thinkingdom Media Group. It trades about 0.03 of its total potential returns per unit of risk. Thinkingdom Media Group is currently generating about 0.06 per unit of volatility. If you would invest 1,601 in Thinkingdom Media Group on October 12, 2024 and sell it today you would earn a total of 464.00 from holding Thinkingdom Media Group or generate 28.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Thinkingdom Media Group
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Thinkingdom Media |
Anhui Huilong and Thinkingdom Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Thinkingdom Media
The main advantage of trading using opposite Anhui Huilong and Thinkingdom Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Thinkingdom Media 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 Thinkingdom Media will offset losses from the drop in Thinkingdom Media'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 |
| Thinkingdom Media vs. Ping An Insurance | Thinkingdom Media vs. Shenzhen Zhongzhuang Construction | Thinkingdom Media vs. Sunny Loan Top | Thinkingdom Media vs. Anhui Huilong Agricultural |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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