Correlation Between Anhui Huaren and Shandong Homey
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huaren Health and Shandong Homey Aquatic, you can compare the effects of market volatilities on Anhui Huaren and Shandong Homey 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 Shandong Homey. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Shandong Homey.
Diversification Opportunities for Anhui Huaren and Shandong Homey
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Shandong is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Shandong Homey Aquatic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Homey Aquatic 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 Shandong Homey. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Homey Aquatic has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Shandong Homey go up and down completely randomly.
Pair Corralation between Anhui Huaren and Shandong Homey
Assuming the 90 days trading horizon Anhui Huaren is expected to generate 2.32 times less return on investment than Shandong Homey. But when comparing it to its historical volatility, Anhui Huaren Health is 1.17 times less risky than Shandong Homey. It trades about 0.12 of its potential returns per unit of risk. Shandong Homey Aquatic is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 158.00 in Shandong Homey Aquatic on September 12, 2024 and sell it today you would earn a total of 116.00 from holding Shandong Homey Aquatic or generate 73.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Anhui Huaren Health vs. Shandong Homey Aquatic
Performance |
| Timeline |
| Anhui Huaren Health |
| Shandong Homey Aquatic |
Anhui Huaren and Shandong Homey Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Shandong Homey
The main advantage of trading using opposite Anhui Huaren and Shandong Homey positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Shandong Homey 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 Shandong Homey will offset losses from the drop in Shandong Homey's long position.| Anhui Huaren vs. Ming Yang Smart | Anhui Huaren vs. 159681 | Anhui Huaren vs. 159005 | Anhui Huaren vs. Loctek Ergonomic Technology |
| Shandong Homey vs. Zhongrun Resources Investment | Shandong Homey vs. Shenzhen Centralcon Investment | Shandong Homey vs. Shaanxi Energy Investment | Shandong Homey vs. Zhongtong Guomai Communication |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |