Correlation Between Guangdong Silvere and Anhui Huaheng
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By analyzing existing cross correlation between Guangdong Silvere Sci and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Guangdong Silvere 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 Silvere with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Anhui Huaheng.
Diversification Opportunities for Guangdong Silvere and Anhui Huaheng
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and Anhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 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 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 Silvere i.e., Guangdong Silvere and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Anhui Huaheng
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.02 times more return on investment than Anhui Huaheng. However, Guangdong Silvere is 1.02 times more volatile than Anhui Huaheng Biotechnology. It trades about 0.02 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 547.00 in Guangdong Silvere Sci on October 18, 2024 and sell it today you would earn a total of 11.00 from holding Guangdong Silvere Sci or generate 2.01% 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 Huaheng Biotechnology
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Anhui Huaheng Biotec |
Guangdong Silvere and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Anhui Huaheng
The main advantage of trading using opposite Guangdong Silvere and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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 Silvere vs. Sichuan Jinshi Technology | Guangdong Silvere vs. FSPG Hi Tech Co | Guangdong Silvere vs. Guangdong Shenglu Telecommunication | Guangdong Silvere vs. Shanghai Shibei Hi Tech |
| Anhui Huaheng vs. Dongfeng Automobile Co | Anhui Huaheng vs. Chongqing Changan Automobile | Anhui Huaheng vs. Songz Automobile Air | Anhui Huaheng vs. Sinomach Automobile 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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