Correlation Between Anker Innovations and HUAQIN TECHNOLOGY
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By analyzing existing cross correlation between Anker Innovations Technology and HUAQIN TECHNOLOGY LTD, you can compare the effects of market volatilities on Anker Innovations and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anker Innovations and HUAQIN TECHNOLOGY.
Diversification Opportunities for Anker Innovations and HUAQIN TECHNOLOGY
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anker and HUAQIN is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anker Innovations Technology and HUAQIN TECHNOLOGY LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HUAQIN TECHNOLOGY LTD 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 HUAQIN TECHNOLOGY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HUAQIN TECHNOLOGY LTD has no effect on the direction of Anker Innovations i.e., Anker Innovations and HUAQIN TECHNOLOGY go up and down completely randomly.
Pair Corralation between Anker Innovations and HUAQIN TECHNOLOGY
Assuming the 90 days trading horizon Anker Innovations Technology is expected to generate 0.83 times more return on investment than HUAQIN TECHNOLOGY. However, Anker Innovations Technology is 1.21 times less risky than HUAQIN TECHNOLOGY. It trades about 0.48 of its potential returns per unit of risk. HUAQIN TECHNOLOGY LTD is currently generating about 0.12 per unit of risk. If you would invest 7,996 in Anker Innovations Technology on September 26, 2024 and sell it today you would earn a total of 1,623 from holding Anker Innovations Technology or generate 20.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anker Innovations Technology vs. HUAQIN TECHNOLOGY LTD
Performance |
| Timeline |
| Anker Innovations |
| HUAQIN TECHNOLOGY LTD |
Anker Innovations and HUAQIN TECHNOLOGY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anker Innovations and HUAQIN TECHNOLOGY
The main advantage of trading using opposite Anker Innovations and HUAQIN TECHNOLOGY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anker Innovations position performs unexpectedly, HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY will offset losses from the drop in HUAQIN TECHNOLOGY's long position.| Anker Innovations vs. Zhonghong Pulin Medical | Anker Innovations vs. Dongfeng Automobile Co | Anker Innovations vs. Blue Sail Medical | Anker Innovations vs. Cowealth Medical China |
| HUAQIN TECHNOLOGY vs. Anker Innovations Technology | HUAQIN TECHNOLOGY vs. Sharetronic Data Technology | HUAQIN TECHNOLOGY vs. Hangzhou EZVIZ Network | HUAQIN TECHNOLOGY vs. Sichuan Furong Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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