Correlation Between Anhui Jinhe and Hubei Geoway
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Hubei Geoway Investment, you can compare the effects of market volatilities on Anhui Jinhe and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Hubei Geoway.
Diversification Opportunities for Anhui Jinhe and Hubei Geoway
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Hubei is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Hubei Geoway go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Hubei Geoway
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.53 times more return on investment than Hubei Geoway. However, Anhui Jinhe Industrial is 1.9 times less risky than Hubei Geoway. It trades about 0.25 of its potential returns per unit of risk. Hubei Geoway Investment is currently generating about -0.09 per unit of risk. If you would invest 2,240 in Anhui Jinhe Industrial on November 4, 2024 and sell it today you would earn a total of 175.00 from holding Anhui Jinhe Industrial or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Hubei Geoway Investment
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Hubei Geoway Investment |
Anhui Jinhe and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Hubei Geoway
The main advantage of trading using opposite Anhui Jinhe and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway's long position.| Anhui Jinhe vs. Guilin Seamild Foods | Anhui Jinhe vs. Ligao Foods CoLtd | Anhui Jinhe vs. Gan Yuan Foods | Anhui Jinhe vs. Anhui Jianghuai Automobile |
| Hubei Geoway vs. Lecron Energy Saving | Hubei Geoway vs. Unisplendour Corp | Hubei Geoway vs. Hunan Mendale Hometextile | Hubei Geoway vs. Industrial Bank 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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