Correlation Between Anhui Jinhe and Hengli Industrial
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Hengli Industrial Development, you can compare the effects of market volatilities on Anhui Jinhe and Hengli Industrial 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 Jinhe with a short position of Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Hengli Industrial.
Diversification Opportunities for Anhui Jinhe and Hengli Industrial
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Hengli is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial and Anhui Jinhe 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 Jinhe Industrial are associated (or correlated) with Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Hengli Industrial go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Hengli Industrial
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.48 times more return on investment than Hengli Industrial. However, Anhui Jinhe Industrial is 2.1 times less risky than Hengli Industrial. It trades about -0.02 of its potential returns per unit of risk. Hengli Industrial Development is currently generating about -0.06 per unit of risk. If you would invest 2,368 in Anhui Jinhe Industrial on October 12, 2024 and sell it today you would lose (19.00) from holding Anhui Jinhe Industrial or give up 0.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Hengli Industrial Development
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Hengli Industrial |
Anhui Jinhe and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Hengli Industrial
The main advantage of trading using opposite Anhui Jinhe and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Anhui Jinhe vs. Chison Medical Technologies | Anhui Jinhe vs. Anhui Gujing Distillery | Anhui Jinhe vs. Guangdong Transtek Medical | Anhui Jinhe vs. Tinavi Medical Technologies |
| Hengli Industrial vs. PKU HealthCare Corp | Hengli Industrial vs. De Rucci Healthy | Hengli Industrial vs. Sunny Loan Top | Hengli Industrial vs. Lotus Health Group |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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