Correlation Between Anhui Tongguan and Hongrun Construction
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By analyzing existing cross correlation between Anhui Tongguan Copper and Hongrun Construction Group, you can compare the effects of market volatilities on Anhui Tongguan and Hongrun Construction 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 Anhui Tongguan with a short position of Hongrun Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Hongrun Construction.
Diversification Opportunities for Anhui Tongguan and Hongrun Construction
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and Hongrun is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Hongrun Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hongrun Construction and Anhui Tongguan 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 Anhui Tongguan Copper are associated (or correlated) with Hongrun Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hongrun Construction has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Hongrun Construction go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Hongrun Construction
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Hongrun Construction. In addition to that, Anhui Tongguan is 1.31 times more volatile than Hongrun Construction Group. It trades about 0.0 of its total potential returns per unit of risk. Hongrun Construction Group is currently generating about 0.01 per unit of volatility. If you would invest 522.00 in Hongrun Construction Group on October 14, 2024 and sell it today you would earn a total of 2.00 from holding Hongrun Construction Group or generate 0.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Hongrun Construction Group
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Hongrun Construction |
Anhui Tongguan and Hongrun Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Hongrun Construction
The main advantage of trading using opposite Anhui Tongguan and Hongrun Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Hongrun Construction 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 Hongrun Construction will offset losses from the drop in Hongrun Construction's long position.| Anhui Tongguan vs. Eastroc Beverage Group | Anhui Tongguan vs. Anhui Transport Consulting | Anhui Tongguan vs. Great Sun Foods Co | Anhui Tongguan vs. Muyuan Foodstuff Co |
| Hongrun Construction vs. Tonghua Grape Wine | Hongrun Construction vs. Gansu Huangtai Wine marketing | Hongrun Construction vs. Anhui Tongguan Copper | Hongrun Construction vs. Beijing Shunxin Agriculture |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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