Correlation Between Anhui Huaren and Chinese Universe
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By analyzing existing cross correlation between Anhui Huaren Health and Chinese Universe Publishing, you can compare the effects of market volatilities on Anhui Huaren and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Chinese Universe.
Diversification Opportunities for Anhui Huaren and Chinese Universe
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Chinese is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Chinese Universe go up and down completely randomly.
Pair Corralation between Anhui Huaren and Chinese Universe
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 1.35 times more return on investment than Chinese Universe. However, Anhui Huaren is 1.35 times more volatile than Chinese Universe Publishing. It trades about -0.09 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.33 per unit of risk. If you would invest 1,137 in Anhui Huaren Health on October 26, 2024 and sell it today you would lose (49.00) from holding Anhui Huaren Health or give up 4.31% 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. Chinese Universe Publishing
Performance |
| Timeline |
| Anhui Huaren Health |
| Chinese Universe Pub |
Anhui Huaren and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Chinese Universe
The main advantage of trading using opposite Anhui Huaren and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe'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 |
| Chinese Universe vs. Bus Online Co | Chinese Universe vs. Holitech Technology Co | Chinese Universe vs. Gome Telecom Equipment | Chinese Universe vs. Cultural Investment Holdings |
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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