Correlation Between Hubeiyichang Transportation and Andon Health
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By analyzing existing cross correlation between Hubeiyichang Transportation Group and Andon Health Co, you can compare the effects of market volatilities on Hubeiyichang Transportation and Andon Health 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 Hubeiyichang Transportation with a short position of Andon Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Andon Health.
Diversification Opportunities for Hubeiyichang Transportation and Andon Health
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubeiyichang and Andon is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Andon Health Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Andon Health and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group are associated (or correlated) with Andon Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Andon Health has no effect on the direction of Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Andon Health go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Andon Health
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 0.82 times more return on investment than Andon Health. However, Hubeiyichang Transportation Group is 1.21 times less risky than Andon Health. It trades about 0.01 of its potential returns per unit of risk. Andon Health Co is currently generating about -0.01 per unit of risk. If you would invest 516.00 in Hubeiyichang Transportation Group on November 1, 2024 and sell it today you would lose (6.00) from holding Hubeiyichang Transportation Group or give up 1.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Andon Health Co
Performance |
| Timeline |
| Hubeiyichang Transportation |
| Andon Health |
Hubeiyichang Transportation and Andon Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubeiyichang Transportation and Andon Health
The main advantage of trading using opposite Hubeiyichang Transportation and Andon Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation position performs unexpectedly, Andon Health 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 Andon Health will offset losses from the drop in Andon Health's long position.The idea behind Hubeiyichang Transportation Group and Andon Health Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Andon Health vs. Hubeiyichang Transportation Group | Andon Health vs. Jiangsu Broadcasting Cable | Andon Health vs. Chongqing Road Bridge | Andon Health vs. Silkroad Visual Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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