Correlation Between Anhui Huaren and China Asset
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By analyzing existing cross correlation between Anhui Huaren Health and China Asset Management, you can compare the effects of market volatilities on Anhui Huaren and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and China Asset.
Diversification Opportunities for Anhui Huaren and China Asset
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and China is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and China Asset go up and down completely randomly.
Pair Corralation between Anhui Huaren and China Asset
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the China Asset. In addition to that, Anhui Huaren is 2.32 times more volatile than China Asset Management. It trades about -0.07 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.43 per unit of volatility. If you would invest 316.00 in China Asset Management on September 28, 2024 and sell it today you would earn a total of 39.00 from holding China Asset Management or generate 12.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. China Asset Management
Performance |
| Timeline |
| Anhui Huaren Health |
| China Asset Management |
Anhui Huaren and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and China Asset
The main advantage of trading using opposite Anhui Huaren and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Anhui Huaren vs. Industrial and Commercial | Anhui Huaren vs. Kweichow Moutai Co | Anhui Huaren vs. Agricultural Bank of | Anhui Huaren vs. China Mobile Limited |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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