Correlation Between Ziel Home and Anhui Huilong
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By analyzing existing cross correlation between Ziel Home Furnishing and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Ziel Home and Anhui Huilong 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 Ziel Home with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ziel Home and Anhui Huilong.
Diversification Opportunities for Ziel Home and Anhui Huilong
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ziel and Anhui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ziel Home Furnishing and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Ziel Home 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 Ziel Home Furnishing are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Ziel Home i.e., Ziel Home and Anhui Huilong go up and down completely randomly.
Pair Corralation between Ziel Home and Anhui Huilong
Assuming the 90 days trading horizon Ziel Home Furnishing is expected to generate 1.5 times more return on investment than Anhui Huilong. However, Ziel Home is 1.5 times more volatile than Anhui Huilong Agricultural. It trades about 0.0 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.03 per unit of risk. If you would invest 2,466 in Ziel Home Furnishing on October 18, 2024 and sell it today you would lose (473.00) from holding Ziel Home Furnishing or give up 19.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 79.83% |
| Values | Daily Returns |
Ziel Home Furnishing vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Ziel Home Furnishing |
| Anhui Huilong Agricu |
Ziel Home and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ziel Home and Anhui Huilong
The main advantage of trading using opposite Ziel Home and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ziel Home position performs unexpectedly, Anhui Huilong 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 Anhui Huilong will offset losses from the drop in Anhui Huilong's long position.| Ziel Home vs. Sinomach General Machinery | Ziel Home vs. Linzhou Heavy Machinery | Ziel Home vs. Citic Guoan Wine | Ziel Home vs. Jinlong Machinery Electronic |
| Anhui Huilong vs. Vohringer Home Technology | Anhui Huilong vs. Ziel Home Furnishing | Anhui Huilong vs. Markor International Home | Anhui Huilong vs. BTG Hotels Group |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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