Correlation Between Anhui Huaren and Citic Offshore
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By analyzing existing cross correlation between Anhui Huaren Health and Citic Offshore Helicopter, you can compare the effects of market volatilities on Anhui Huaren and Citic Offshore 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 Huaren with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Citic Offshore.
Diversification Opportunities for Anhui Huaren and Citic Offshore
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Citic is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Anhui Huaren 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 Huaren Health are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Citic Offshore go up and down completely randomly.
Pair Corralation between Anhui Huaren and Citic Offshore
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Citic Offshore. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.29 times less risky than Citic Offshore. The stock trades about -0.4 of its potential returns per unit of risk. The Citic Offshore Helicopter is currently generating about -0.22 of returns per unit of risk over similar time horizon. If you would invest 2,661 in Citic Offshore Helicopter on October 16, 2024 and sell it today you would lose (417.00) from holding Citic Offshore Helicopter or give up 15.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Anhui Huaren Health |
| Citic Offshore Helicopter |
Anhui Huaren and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Citic Offshore
The main advantage of trading using opposite Anhui Huaren and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Citic Offshore 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 Citic Offshore will offset losses from the drop in Citic Offshore's long position.| Anhui Huaren vs. Guotai Epoint Software | Anhui Huaren vs. Keda Clean Energy | Anhui Huaren vs. GuoChuang Software Co | Anhui Huaren vs. Sunwave Communications Co |
| Citic Offshore vs. Anhui Huaren Health | Citic Offshore vs. Dezhan HealthCare Co | Citic Offshore vs. Goodwill E Health | Citic Offshore vs. Youngy Health 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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