Correlation Between Anhui Huilong and Eastern Communications
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Eastern Communications Co, you can compare the effects of market volatilities on Anhui Huilong and Eastern Communications 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 Eastern Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Eastern Communications.
Diversification Opportunities for Anhui Huilong and Eastern Communications
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Eastern is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Eastern Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eastern Communications 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 Eastern Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eastern Communications has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Eastern Communications go up and down completely randomly.
Pair Corralation between Anhui Huilong and Eastern Communications
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to generate 1.27 times more return on investment than Eastern Communications. However, Anhui Huilong is 1.27 times more volatile than Eastern Communications Co. It trades about 0.06 of its potential returns per unit of risk. Eastern Communications Co is currently generating about 0.07 per unit of risk. If you would invest 522.00 in Anhui Huilong Agricultural on September 3, 2024 and sell it today you would earn a total of 115.00 from holding Anhui Huilong Agricultural or generate 22.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Eastern Communications Co
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Eastern Communications |
Anhui Huilong and Eastern Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Eastern Communications
The main advantage of trading using opposite Anhui Huilong and Eastern Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Eastern Communications 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 Eastern Communications will offset losses from the drop in Eastern Communications' long position.| Anhui Huilong vs. Healthcare Co | Anhui Huilong vs. China Sports Industry | Anhui Huilong vs. Anhui Huaren Health | Anhui Huilong vs. Sportsoul Co Ltd |
| Eastern Communications vs. China Sports Industry | Eastern Communications vs. Linzhou Heavy Machinery | Eastern Communications vs. Anhui Huilong Agricultural | Eastern Communications vs. Lutian Machinery Co |
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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