Correlation Between Anhui Huaren and Shanghai Yaoji
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By analyzing existing cross correlation between Anhui Huaren Health and Shanghai Yaoji Playing, you can compare the effects of market volatilities on Anhui Huaren and Shanghai Yaoji 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 Shanghai Yaoji. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Shanghai Yaoji.
Diversification Opportunities for Anhui Huaren and Shanghai Yaoji
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Shanghai is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Shanghai Yaoji Playing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yaoji Playing 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 Shanghai Yaoji. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yaoji Playing has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Shanghai Yaoji go up and down completely randomly.
Pair Corralation between Anhui Huaren and Shanghai Yaoji
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Shanghai Yaoji. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.47 times less risky than Shanghai Yaoji. The stock trades about -0.1 of its potential returns per unit of risk. The Shanghai Yaoji Playing is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 3,178 in Shanghai Yaoji Playing on October 30, 2024 and sell it today you would lose (381.00) from holding Shanghai Yaoji Playing or give up 11.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Shanghai Yaoji Playing
Performance |
| Timeline |
| Anhui Huaren Health |
| Shanghai Yaoji Playing |
Anhui Huaren and Shanghai Yaoji Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Shanghai Yaoji
The main advantage of trading using opposite Anhui Huaren and Shanghai Yaoji positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Shanghai Yaoji 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 Shanghai Yaoji will offset losses from the drop in Shanghai Yaoji's long position.| Anhui Huaren vs. Cloud Live Technology | Anhui Huaren vs. Nanjing Putian Telecommunications | Anhui Huaren vs. Shenzhen Coship Electronics | Anhui Huaren vs. Shenzhen Hifuture Electric |
| Shanghai Yaoji vs. Orinko Advanced Plastics | Shanghai Yaoji vs. Malion New Materials | Shanghai Yaoji vs. Lootom Telcovideo Network | Shanghai Yaoji vs. Shanghai Phichem Material |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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