Correlation Between Anhui Huilong and Liaoning Chengda
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on Anhui Huilong and Liaoning Chengda 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 Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Liaoning Chengda.
Diversification Opportunities for Anhui Huilong and Liaoning Chengda
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Liaoning is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio 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 Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Liaoning Chengda go up and down completely randomly.
Pair Corralation between Anhui Huilong and Liaoning Chengda
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Liaoning Chengda. In addition to that, Anhui Huilong is 1.82 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.42 of its total potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.59 per unit of volatility. If you would invest 2,773 in Liaoning Chengda Biotechnology on October 11, 2024 and sell it today you would lose (329.00) from holding Liaoning Chengda Biotechnology or give up 11.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Liaoning Chengda Bio |
Anhui Huilong and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Liaoning Chengda
The main advantage of trading using opposite Anhui Huilong and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda'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 |
| Liaoning Chengda vs. Sichuan Hebang Biotechnology | Liaoning Chengda vs. Anhui Huilong Agricultural | Liaoning Chengda vs. Miracll Chemicals Co | Liaoning Chengda vs. Guangzhou KDT 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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