Correlation Between Anhui Huaren and Fujian Oriental
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By analyzing existing cross correlation between Anhui Huaren Health and Fujian Oriental Silver, you can compare the effects of market volatilities on Anhui Huaren and Fujian Oriental 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 Fujian Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Fujian Oriental.
Diversification Opportunities for Anhui Huaren and Fujian Oriental
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Fujian is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Fujian Oriental Silver in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Oriental Silver 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 Fujian Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Oriental Silver has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Fujian Oriental go up and down completely randomly.
Pair Corralation between Anhui Huaren and Fujian Oriental
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 1.07 times more return on investment than Fujian Oriental. However, Anhui Huaren is 1.07 times more volatile than Fujian Oriental Silver. It trades about -0.18 of its potential returns per unit of risk. Fujian Oriental Silver is currently generating about -0.4 per unit of risk. If you would invest 1,234 in Anhui Huaren Health on October 12, 2024 and sell it today you would lose (151.00) from holding Anhui Huaren Health or give up 12.24% 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. Fujian Oriental Silver
Performance |
| Timeline |
| Anhui Huaren Health |
| Fujian Oriental Silver |
Anhui Huaren and Fujian Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Fujian Oriental
The main advantage of trading using opposite Anhui Huaren and Fujian Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Fujian Oriental 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 Fujian Oriental will offset losses from the drop in Fujian Oriental's long position.| Anhui Huaren vs. Oppein Home Group | Anhui Huaren vs. Guangdong Transtek Medical | Anhui Huaren vs. Medprin Regenerative Medical | Anhui Huaren vs. Beijing Kingsoft Office |
| Fujian Oriental vs. Anhui Huaren Health | Fujian Oriental vs. Healthcare Co | Fujian Oriental vs. Yunnan Jianzhijia Health Chain | Fujian Oriental vs. Guangdong Marubi Biotechnology |
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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