Correlation Between Anhui Huaren and Shenzhen Hifuture
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By analyzing existing cross correlation between Anhui Huaren Health and Shenzhen Hifuture Electric, you can compare the effects of market volatilities on Anhui Huaren and Shenzhen Hifuture 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 Shenzhen Hifuture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Shenzhen Hifuture.
Diversification Opportunities for Anhui Huaren and Shenzhen Hifuture
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Shenzhen is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Shenzhen Hifuture Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Hifuture 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 Shenzhen Hifuture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Hifuture has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Shenzhen Hifuture go up and down completely randomly.
Pair Corralation between Anhui Huaren and Shenzhen Hifuture
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 0.7 times more return on investment than Shenzhen Hifuture. However, Anhui Huaren Health is 1.43 times less risky than Shenzhen Hifuture. It trades about -0.14 of its potential returns per unit of risk. Shenzhen Hifuture Electric is currently generating about -0.32 per unit of risk. If you would invest 1,158 in Anhui Huaren Health on October 28, 2024 and sell it today you would lose (73.00) from holding Anhui Huaren Health or give up 6.3% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Shenzhen Hifuture Electric
Performance |
| Timeline |
| Anhui Huaren Health |
| Shenzhen Hifuture |
Anhui Huaren and Shenzhen Hifuture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Shenzhen Hifuture
The main advantage of trading using opposite Anhui Huaren and Shenzhen Hifuture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Shenzhen Hifuture 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 Shenzhen Hifuture will offset losses from the drop in Shenzhen Hifuture's long position.| Anhui Huaren vs. Chahua Modern Housewares | Anhui Huaren vs. Capitalonline Data Service | Anhui Huaren vs. Peoples Insurance of | Anhui Huaren vs. Sanbo Hospital Management |
| Shenzhen Hifuture vs. Lotus Health Group | Shenzhen Hifuture vs. Anhui Huaren Health | Shenzhen Hifuture vs. PKU HealthCare Corp | Shenzhen Hifuture vs. Shandong Sinoglory Health |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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