Correlation Between Anhui Huaren and Eit Environmental
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By analyzing existing cross correlation between Anhui Huaren Health and Eit Environmental Development, you can compare the effects of market volatilities on Anhui Huaren and Eit Environmental 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 Eit Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Eit Environmental.
Diversification Opportunities for Anhui Huaren and Eit Environmental
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Eit is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Eit Environmental Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eit Environmental 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 Eit Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eit Environmental has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Eit Environmental go up and down completely randomly.
Pair Corralation between Anhui Huaren and Eit Environmental
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 1.16 times more return on investment than Eit Environmental. However, Anhui Huaren is 1.16 times more volatile than Eit Environmental Development. It trades about 0.0 of its potential returns per unit of risk. Eit Environmental Development is currently generating about -0.08 per unit of risk. If you would invest 1,342 in Anhui Huaren Health on September 14, 2024 and sell it today you would lose (12.00) from holding Anhui Huaren Health or give up 0.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Eit Environmental Development
Performance |
| Timeline |
| Anhui Huaren Health |
| Eit Environmental |
Anhui Huaren and Eit Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Eit Environmental
The main advantage of trading using opposite Anhui Huaren and Eit Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Eit Environmental 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 Eit Environmental will offset losses from the drop in Eit Environmental's long position.| Anhui Huaren vs. Ming Yang Smart | Anhui Huaren vs. 159681 | Anhui Huaren vs. 159005 | Anhui Huaren vs. Loctek Ergonomic Technology |
| Eit Environmental vs. Everjoy Health Group | Eit Environmental vs. Juneyao Airlines | Eit Environmental vs. Anhui Huaren Health | Eit Environmental vs. Shanghai Rongtai 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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