Correlation Between Guangdong Silvere and Anhui Huaertai
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By analyzing existing cross correlation between Guangdong Silvere Sci and Anhui Huaertai Chemical, you can compare the effects of market volatilities on Guangdong Silvere and Anhui Huaertai 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 Silvere with a short position of Anhui Huaertai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Anhui Huaertai.
Diversification Opportunities for Guangdong Silvere and Anhui Huaertai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci and Anhui Huaertai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaertai Chemical and Guangdong Silvere 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 Silvere Sci are associated (or correlated) with Anhui Huaertai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaertai Chemical has no effect on the direction of Guangdong Silvere i.e., Guangdong Silvere and Anhui Huaertai go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Anhui Huaertai
Assuming the 90 days trading horizon Guangdong Silvere is expected to generate 8.17 times less return on investment than Anhui Huaertai. In addition to that, Guangdong Silvere is 1.54 times more volatile than Anhui Huaertai Chemical. It trades about 0.01 of its total potential returns per unit of risk. Anhui Huaertai Chemical is currently generating about 0.07 per unit of volatility. If you would invest 1,075 in Anhui Huaertai Chemical on September 5, 2024 and sell it today you would earn a total of 78.00 from holding Anhui Huaertai Chemical or generate 7.26% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Guangdong Silvere Sci vs. Anhui Huaertai Chemical
Performance |
Timeline |
Guangdong Silvere Sci |
Anhui Huaertai Chemical |
Guangdong Silvere and Anhui Huaertai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Guangdong Silvere and Anhui Huaertai
The main advantage of trading using opposite Guangdong Silvere and Anhui Huaertai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere position performs unexpectedly, Anhui Huaertai 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 Huaertai will offset losses from the drop in Anhui Huaertai's long position.Guangdong Silvere vs. Zijin Mining Group | Guangdong Silvere vs. Wanhua Chemical Group | Guangdong Silvere vs. Baoshan Iron Steel | Guangdong Silvere vs. Rongsheng Petrochemical Co |
Anhui Huaertai vs. Shengda Mining Co | Anhui Huaertai vs. Guangdong Silvere Sci | Anhui Huaertai vs. Xiandai Investment Co | Anhui Huaertai vs. Jiangsu Yueda Investment |
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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