Correlation Between Anker Innovations and Hunan Investment
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By analyzing existing cross correlation between Anker Innovations Technology and Hunan Investment Group, you can compare the effects of market volatilities on Anker Innovations and Hunan Investment 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 Anker Innovations with a short position of Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and Hunan Investment.
Diversification Opportunities for Anker Innovations and Hunan Investment
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anker and Hunan is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment and Anker Innovations 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 Anker Innovations Technology are associated (or correlated) with Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Anker Innovations i.e., Anker Innovations and Hunan Investment go up and down completely randomly.
Pair Corralation between Anker Innovations and Hunan Investment
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 1.05 times more return on investment than Hunan Investment. However, Anker Innovations is 1.05 times more volatile than Hunan Investment Group. It trades about 0.06 of its potential returns per unit of risk. Hunan Investment Group is currently generating about 0.02 per unit of risk. If you would invest 6,269 in Anker Innovations Technology on October 16, 2024 and sell it today you would earn a total of 4,075 from holding Anker Innovations Technology or generate 65.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anker Innovations Technology vs. Hunan Investment Group
Performance |
| Timeline |
| Anker Innovations |
| Hunan Investment |
Anker Innovations and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and Hunan Investment
The main advantage of trading using opposite Anker Innovations and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Anker Innovations vs. Kweichow Moutai Co | Anker Innovations vs. NAURA Technology Group | Anker Innovations vs. Zhejiang Orient Gene | Anker Innovations vs. APT Medical |
| Hunan Investment vs. GuoChuang Software Co | Hunan Investment vs. Bomesc Offshore Engineering | Hunan Investment vs. Guotai Epoint Software | Hunan Investment vs. Northern United Publishing |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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