Correlation Between Hunan Airbluer and Yingde Greatchem
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By analyzing existing cross correlation between Hunan Airbluer Environmental and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Hunan Airbluer and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Airbluer and Yingde Greatchem.
Diversification Opportunities for Hunan Airbluer and Yingde Greatchem
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hunan and Yingde is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Airbluer Environmental and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Hunan Airbluer i.e., Hunan Airbluer and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Hunan Airbluer and Yingde Greatchem
Assuming the 90 days trading horizon Hunan Airbluer Environmental is expected to under-perform the Yingde Greatchem. In addition to that, Hunan Airbluer is 1.5 times more volatile than Yingde Greatchem Chemicals. It trades about -0.06 of its total potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.03 per unit of volatility. If you would invest 2,536 in Yingde Greatchem Chemicals on August 29, 2024 and sell it today you would lose (57.00) from holding Yingde Greatchem Chemicals or give up 2.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Airbluer Environmental vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Hunan Airbluer Envir |
| Yingde Greatchem Che |
Hunan Airbluer and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Airbluer and Yingde Greatchem
The main advantage of trading using opposite Hunan Airbluer and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Airbluer position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Hunan Airbluer vs. China Petroleum Chemical | Hunan Airbluer vs. PetroChina Co Ltd | Hunan Airbluer vs. China State Construction | Hunan Airbluer vs. China Railway Group |
| Yingde Greatchem vs. Xingguang Agricultural Mach | Yingde Greatchem vs. Anhui Deli Household | Yingde Greatchem vs. Long Yuan Construction | Yingde Greatchem vs. Lutian Machinery Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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