Correlation Between Hangzhou Gaoxin and Anhui Huilong
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By analyzing existing cross correlation between Hangzhou Gaoxin Rubber and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Hangzhou Gaoxin and Anhui Huilong 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 Hangzhou Gaoxin with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Gaoxin and Anhui Huilong.
Diversification Opportunities for Hangzhou Gaoxin and Anhui Huilong
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hangzhou and Anhui is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Gaoxin Rubber and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Hangzhou Gaoxin 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 Hangzhou Gaoxin Rubber are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Hangzhou Gaoxin i.e., Hangzhou Gaoxin and Anhui Huilong go up and down completely randomly.
Pair Corralation between Hangzhou Gaoxin and Anhui Huilong
Assuming the 90 days trading horizon Hangzhou Gaoxin Rubber is expected to generate 2.03 times more return on investment than Anhui Huilong. However, Hangzhou Gaoxin is 2.03 times more volatile than Anhui Huilong Agricultural. It trades about -0.08 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.2 per unit of risk. If you would invest 1,082 in Hangzhou Gaoxin Rubber on October 30, 2024 and sell it today you would lose (155.00) from holding Hangzhou Gaoxin Rubber or give up 14.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Gaoxin Rubber vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Hangzhou Gaoxin Rubber |
| Anhui Huilong Agricu |
Hangzhou Gaoxin and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Gaoxin and Anhui Huilong
The main advantage of trading using opposite Hangzhou Gaoxin and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Gaoxin position performs unexpectedly, Anhui Huilong 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 Huilong will offset losses from the drop in Anhui Huilong's long position.| Hangzhou Gaoxin vs. Zijin Mining Group | Hangzhou Gaoxin vs. Wanhua Chemical Group | Hangzhou Gaoxin vs. Baoshan Iron Steel | Hangzhou Gaoxin vs. Shandong Gold Mining |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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