Correlation Between Anhui Fuhuang and Healthcare
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By analyzing existing cross correlation between Anhui Fuhuang Steel and Healthcare Co, you can compare the effects of market volatilities on Anhui Fuhuang and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and Healthcare.
Diversification Opportunities for Anhui Fuhuang and Healthcare
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Healthcare is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and Healthcare go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and Healthcare
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to under-perform the Healthcare. In addition to that, Anhui Fuhuang is 1.84 times more volatile than Healthcare Co. It trades about -0.2 of its total potential returns per unit of risk. Healthcare Co is currently generating about -0.1 per unit of volatility. If you would invest 700.00 in Healthcare Co on October 31, 2024 and sell it today you would lose (34.00) from holding Healthcare Co or give up 4.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. Healthcare Co
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| Healthcare |
Anhui Fuhuang and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and Healthcare
The main advantage of trading using opposite Anhui Fuhuang and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Anhui Fuhuang vs. Kuang Chi Technologies | Anhui Fuhuang vs. Tianjin Hi Tech Development | Anhui Fuhuang vs. Dymatic Chemicals | Anhui Fuhuang vs. Shenzhen Noposion Agrochemicals |
| Healthcare vs. Ingenic Semiconductor | Healthcare vs. Hubei Tech Semiconductors | Healthcare vs. Caihong Display Devices | Healthcare vs. Harbin Air Conditioning |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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