Correlation Between Anhui Fuhuang and Taiji Computer
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Taiji Computer Corp, you can compare the effects of market volatilities on Anhui Fuhuang and Taiji Computer 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 Fuhuang with a short position of Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Taiji Computer.
Diversification Opportunities for Anhui Fuhuang and Taiji Computer
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Taiji is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp and Anhui Fuhuang 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 Fuhuang Steel are associated (or correlated) with Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Taiji Computer go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Taiji Computer
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 2.43 times more return on investment than Taiji Computer. However, Anhui Fuhuang is 2.43 times more volatile than Taiji Computer Corp. It trades about 0.16 of its potential returns per unit of risk. Taiji Computer Corp is currently generating about -0.15 per unit of risk. If you would invest 591.00 in Anhui Fuhuang Steel on September 25, 2024 and sell it today you would earn a total of 93.00 from holding Anhui Fuhuang Steel or generate 15.74% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Taiji Computer Corp
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Taiji Computer Corp |
Anhui Fuhuang and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Taiji Computer
The main advantage of trading using opposite Anhui Fuhuang and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Anhui Fuhuang vs. Wanhua Chemical Group | Anhui Fuhuang vs. Shandong Gold Mining | Anhui Fuhuang vs. Rongsheng Petrochemical Co | Anhui Fuhuang vs. Inner Mongolia BaoTou |
| Taiji Computer vs. Kweichow Moutai Co | Taiji Computer vs. Shenzhen Mindray Bio Medical | Taiji Computer vs. Jiangsu Pacific Quartz | Taiji Computer vs. G bits Network 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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