Correlation Between Guangdong Tianhe and Anhui Huaheng
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By analyzing existing cross correlation between Guangdong Tianhe Agricultural and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Guangdong Tianhe and Anhui Huaheng 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 Guangdong Tianhe with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Tianhe and Anhui Huaheng.
Diversification Opportunities for Guangdong Tianhe and Anhui Huaheng
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Anhui is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Tianhe Agricultural and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec and Guangdong Tianhe 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 Guangdong Tianhe Agricultural are associated (or correlated) with Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Guangdong Tianhe i.e., Guangdong Tianhe and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Guangdong Tianhe and Anhui Huaheng
Assuming the 90 days trading horizon Guangdong Tianhe Agricultural is expected to generate 1.18 times more return on investment than Anhui Huaheng. However, Guangdong Tianhe is 1.18 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.01 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.41 per unit of risk. If you would invest 603.00 in Guangdong Tianhe Agricultural on October 30, 2024 and sell it today you would lose (1.00) from holding Guangdong Tianhe Agricultural or give up 0.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Guangdong Tianhe Agricultural vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Guangdong Tianhe Agr |
| Anhui Huaheng Biotec |
Guangdong Tianhe and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Tianhe and Anhui Huaheng
The main advantage of trading using opposite Guangdong Tianhe and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Tianhe position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Guangdong Tianhe vs. Longjian Road Bridge | Guangdong Tianhe vs. Sichuan Fulin Transportation | Guangdong Tianhe vs. Innovative Medical Management | Guangdong Tianhe vs. Shaanxi Broadcast TV |
| Anhui Huaheng vs. Shandong Sanyuan Biotechnology | Anhui Huaheng vs. Shanghai Rightongene Biotechnology | Anhui Huaheng vs. Ningbo MedicalSystem Biotechnology | Anhui Huaheng vs. Gan Yuan Foods |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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