Correlation Between Anhui Huilong and Allied Machinery
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Allied Machinery Co, you can compare the effects of market volatilities on Anhui Huilong and Allied Machinery 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 Allied Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Allied Machinery.
Diversification Opportunities for Anhui Huilong and Allied Machinery
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Allied is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Allied Machinery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allied Machinery 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 Allied Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allied Machinery has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Allied Machinery go up and down completely randomly.
Pair Corralation between Anhui Huilong and Allied Machinery
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 0.92 times more return on investment than Allied Machinery. However, Anhui Huilong Agricultural is 1.09 times less risky than Allied Machinery. It trades about -0.01 of its potential returns per unit of risk. Allied Machinery Co is currently generating about -0.02 per unit of risk. If you would invest 842.00 in Anhui Huilong Agricultural on September 4, 2024 and sell it today you would lose (193.00) from holding Anhui Huilong Agricultural or give up 22.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Allied Machinery Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Allied Machinery |
Anhui Huilong and Allied Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Allied Machinery
The main advantage of trading using opposite Anhui Huilong and Allied Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Allied Machinery 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 Allied Machinery will offset losses from the drop in Allied Machinery's long position.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Rongsheng Petrochemical Co |
| Allied Machinery vs. Chengdu Kanghua Biological | Allied Machinery vs. Beijing Wantai Biological | Allied Machinery vs. Suzhou Novoprotein Scientific | Allied Machinery vs. Aluminum Corp of |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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