Correlation Between Anhui Huaren and Tianjin Ruixin
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By analyzing existing cross correlation between Anhui Huaren Health and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Anhui Huaren and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Tianjin Ruixin.
Diversification Opportunities for Anhui Huaren and Tianjin Ruixin
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Tianjin is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Anhui Huaren and Tianjin Ruixin
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Tianjin Ruixin. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.18 times less risky than Tianjin Ruixin. The stock trades about -0.05 of its potential returns per unit of risk. The Tianjin Ruixin Technology is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,445 in Tianjin Ruixin Technology on October 16, 2024 and sell it today you would lose (45.00) from holding Tianjin Ruixin Technology or give up 3.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.4% |
| Values | Daily Returns |
Anhui Huaren Health vs. Tianjin Ruixin Technology
Performance |
| Timeline |
| Anhui Huaren Health |
| Tianjin Ruixin Technology |
Anhui Huaren and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Tianjin Ruixin
The main advantage of trading using opposite Anhui Huaren and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin'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 |
| Tianjin Ruixin vs. Beijing HuaYuanYiTong Thermal | Tianjin Ruixin vs. Lootom Telcovideo Network | Tianjin Ruixin vs. Anhui Huaren Health | Tianjin Ruixin vs. Hefei Metalforming Mach |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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