Correlation Between Hunan Airbluer and ADAMA
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By analyzing existing cross correlation between Hunan Airbluer Environmental and ADAMA, you can compare the effects of market volatilities on Hunan Airbluer and ADAMA 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 Hunan Airbluer with a short position of ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Airbluer and ADAMA.
Diversification Opportunities for Hunan Airbluer and ADAMA
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and ADAMA is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Airbluer Environmental and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA and Hunan Airbluer 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 Hunan Airbluer Environmental are associated (or correlated) with ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Hunan Airbluer i.e., Hunan Airbluer and ADAMA go up and down completely randomly.
Pair Corralation between Hunan Airbluer and ADAMA
Assuming the 90 days trading horizon Hunan Airbluer Environmental is expected to generate 1.05 times more return on investment than ADAMA. However, Hunan Airbluer is 1.05 times more volatile than ADAMA. It trades about 0.01 of its potential returns per unit of risk. ADAMA is currently generating about -0.35 per unit of risk. If you would invest 5,142 in Hunan Airbluer Environmental on August 30, 2024 and sell it today you would lose (18.00) from holding Hunan Airbluer Environmental or give up 0.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Airbluer Environmental vs. ADAMA
Performance |
| Timeline |
| Hunan Airbluer Envir |
| ADAMA |
Hunan Airbluer and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Airbluer and ADAMA
The main advantage of trading using opposite Hunan Airbluer and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Airbluer position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Hunan Airbluer vs. Agricultural Bank of | Hunan Airbluer vs. Industrial and Commercial | Hunan Airbluer vs. Bank of China | Hunan Airbluer vs. China Construction Bank |
| ADAMA vs. Zijin Mining Group | ADAMA vs. Wanhua Chemical Group | ADAMA vs. Baoshan Iron Steel | ADAMA vs. Shandong Gold Mining |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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