Correlation Between Anhui Fuhuang and GreenTech Environmental
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By analyzing existing cross correlation between Anhui Fuhuang Steel and GreenTech Environmental Co, you can compare the effects of market volatilities on Anhui Fuhuang and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Fuhuang and GreenTech Environmental.
Diversification Opportunities for Anhui Fuhuang and GreenTech Environmental
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and GreenTech is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Fuhuang Steel and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech Environmental 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Anhui Fuhuang i.e., Anhui Fuhuang and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Anhui Fuhuang and GreenTech Environmental
Assuming the 90 days trading horizon Anhui Fuhuang Steel is expected to generate 0.93 times more return on investment than GreenTech Environmental. However, Anhui Fuhuang Steel is 1.07 times less risky than GreenTech Environmental. It trades about 0.02 of its potential returns per unit of risk. GreenTech Environmental Co is currently generating about -0.01 per unit of risk. If you would invest 576.00 in Anhui Fuhuang Steel on August 31, 2024 and sell it today you would earn a total of 39.00 from holding Anhui Fuhuang Steel or generate 6.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Fuhuang Steel vs. GreenTech Environmental Co
Performance |
| Timeline |
| Anhui Fuhuang Steel |
| GreenTech Environmental |
Anhui Fuhuang and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Fuhuang and GreenTech Environmental
The main advantage of trading using opposite Anhui Fuhuang and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Fuhuang position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental's long position.| Anhui Fuhuang vs. Zijin Mining Group | Anhui Fuhuang vs. Baoshan Iron Steel | Anhui Fuhuang vs. Rongsheng Petrochemical 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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