Correlation Between Anhui Huaren and Wuliangye Yibin
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By analyzing existing cross correlation between Anhui Huaren Health and Wuliangye Yibin Co, you can compare the effects of market volatilities on Anhui Huaren and Wuliangye Yibin 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 Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Wuliangye Yibin.
Diversification Opportunities for Anhui Huaren and Wuliangye Yibin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Wuliangye is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin 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 Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Anhui Huaren and Wuliangye Yibin
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Wuliangye Yibin. In addition to that, Anhui Huaren is 1.53 times more volatile than Wuliangye Yibin Co. It trades about -0.04 of its total potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.0 per unit of volatility. If you would invest 16,915 in Wuliangye Yibin Co on September 12, 2024 and sell it today you would lose (2,005) from holding Wuliangye Yibin Co or give up 11.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 90.97% |
| Values | Daily Returns |
Anhui Huaren Health vs. Wuliangye Yibin Co
Performance |
| Timeline |
| Anhui Huaren Health |
| Wuliangye Yibin |
Anhui Huaren and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Wuliangye Yibin
The main advantage of trading using opposite Anhui Huaren and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.| Anhui Huaren vs. China Petroleum Chemical | Anhui Huaren vs. PetroChina Co Ltd | Anhui Huaren vs. China State Construction | Anhui Huaren vs. China Railway Group |
| Wuliangye Yibin vs. Dazhong Transportation Group | Wuliangye Yibin vs. Healthcare Co | Wuliangye Yibin vs. Anhui Huaren Health | Wuliangye Yibin vs. Sichuan Fulin Transportation |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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