Correlation Between Anhui Huilong and Xiamen Goldenhome
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Xiamen Goldenhome Co, you can compare the effects of market volatilities on Anhui Huilong and Xiamen Goldenhome 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 Xiamen Goldenhome. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Xiamen Goldenhome.
Diversification Opportunities for Anhui Huilong and Xiamen Goldenhome
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Xiamen is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Xiamen Goldenhome Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Goldenhome 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 Xiamen Goldenhome. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Goldenhome has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Xiamen Goldenhome go up and down completely randomly.
Pair Corralation between Anhui Huilong and Xiamen Goldenhome
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 0.85 times more return on investment than Xiamen Goldenhome. However, Anhui Huilong Agricultural is 1.17 times less risky than Xiamen Goldenhome. It trades about -0.03 of its potential returns per unit of risk. Xiamen Goldenhome Co is currently generating about -0.03 per unit of risk. If you would invest 834.00 in Anhui Huilong Agricultural on October 27, 2024 and sell it today you would lose (295.00) from holding Anhui Huilong Agricultural or give up 35.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Xiamen Goldenhome Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Xiamen Goldenhome |
Anhui Huilong and Xiamen Goldenhome Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Xiamen Goldenhome
The main advantage of trading using opposite Anhui Huilong and Xiamen Goldenhome positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Xiamen Goldenhome 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 Xiamen Goldenhome will offset losses from the drop in Xiamen Goldenhome'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 |
| Xiamen Goldenhome vs. Jiangnan Mould Plastic | Xiamen Goldenhome vs. Tianjin Silvery Dragon | Xiamen Goldenhome vs. China Building Material | Xiamen Goldenhome vs. Sanxiang Advanced Materials |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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