Correlation Between Guangdong Transtek and Anhui Huilong
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By analyzing existing cross correlation between Guangdong Transtek Medical and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Guangdong Transtek 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 Guangdong Transtek with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Transtek and Anhui Huilong.
Diversification Opportunities for Guangdong Transtek and Anhui Huilong
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Anhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Transtek Medical 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 Guangdong Transtek 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 Transtek Medical 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 Guangdong Transtek i.e., Guangdong Transtek and Anhui Huilong go up and down completely randomly.
Pair Corralation between Guangdong Transtek and Anhui Huilong
Assuming the 90 days trading horizon Guangdong Transtek Medical is expected to generate 1.74 times more return on investment than Anhui Huilong. However, Guangdong Transtek is 1.74 times more volatile than Anhui Huilong Agricultural. It trades about 0.03 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.03 per unit of risk. If you would invest 995.00 in Guangdong Transtek Medical on November 1, 2024 and sell it today you would earn a total of 270.00 from holding Guangdong Transtek Medical or generate 27.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Transtek Medical vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Guangdong Transtek |
| Anhui Huilong Agricu |
Guangdong Transtek and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Transtek and Anhui Huilong
The main advantage of trading using opposite Guangdong Transtek and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Transtek 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.| Guangdong Transtek vs. Anhui Huilong Agricultural | Guangdong Transtek vs. Shanghai Construction Group | Guangdong Transtek vs. Hongrun Construction Group | Guangdong Transtek vs. Ningbo Construction Co |
| Anhui Huilong vs. Harbin Hatou Investment | Anhui Huilong vs. Shenzhen Centralcon Investment | Anhui Huilong vs. Zhejiang JIULI Hi tech | Anhui Huilong vs. Jilin Jlu Communication |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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