Correlation Between Anhui Fuhuang and Guangdong Xiongsu
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Guangdong Xiongsu Technology, you can compare the effects of market volatilities on Anhui Fuhuang and Guangdong Xiongsu 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 Guangdong Xiongsu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Guangdong Xiongsu.
Diversification Opportunities for Anhui Fuhuang and Guangdong Xiongsu
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Guangdong is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Guangdong Xiongsu Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Xiongsu 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 Guangdong Xiongsu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Xiongsu has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Guangdong Xiongsu go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Guangdong Xiongsu
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 1.49 times more return on investment than Guangdong Xiongsu. However, Anhui Fuhuang is 1.49 times more volatile than Guangdong Xiongsu Technology. It trades about -0.12 of its potential returns per unit of risk. Guangdong Xiongsu Technology is currently generating about -0.26 per unit of risk. If you would invest 650.00 in Anhui Fuhuang Steel on October 28, 2024 and sell it today you would lose (77.00) from holding Anhui Fuhuang Steel or give up 11.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Guangdong Xiongsu Technology
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Guangdong Xiongsu |
Anhui Fuhuang and Guangdong Xiongsu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Guangdong Xiongsu
The main advantage of trading using opposite Anhui Fuhuang and Guangdong Xiongsu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Guangdong Xiongsu 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 Guangdong Xiongsu will offset losses from the drop in Guangdong Xiongsu's long position.| Anhui Fuhuang vs. Heilongjiang Transport Development | Anhui Fuhuang vs. Eyebright Medical Technology | Anhui Fuhuang vs. Bangyan Technology Co | Anhui Fuhuang vs. Tianshan Aluminum Group |
| Guangdong Xiongsu vs. Anhui Fuhuang Steel | Guangdong Xiongsu vs. Road Environment Technology | Guangdong Xiongsu vs. Hangzhou Guotai Environmental | Guangdong Xiongsu vs. Eit Environmental Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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