Correlation Between Anhui Huaren and Dawning Information
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By analyzing existing cross correlation between Anhui Huaren Health and Dawning Information Industry, you can compare the effects of market volatilities on Anhui Huaren and Dawning Information 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Dawning Information.
Diversification Opportunities for Anhui Huaren and Dawning Information
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Dawning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning Information 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Dawning Information go up and down completely randomly.
Pair Corralation between Anhui Huaren and Dawning Information
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 0.72 times more return on investment than Dawning Information. However, Anhui Huaren Health is 1.39 times less risky than Dawning Information. It trades about -0.11 of its potential returns per unit of risk. Dawning Information Industry is currently generating about -0.16 per unit of risk. If you would invest 1,139 in Anhui Huaren Health on October 31, 2024 and sell it today you would lose (57.00) from holding Anhui Huaren Health or give up 5.0% 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. Dawning Information Industry
Performance |
| Timeline |
| Anhui Huaren Health |
| Dawning Information |
Anhui Huaren and Dawning Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Dawning Information
The main advantage of trading using opposite Anhui Huaren and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Dawning Information 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 Dawning Information will offset losses from the drop in Dawning Information's long position.| Anhui Huaren vs. Shanghai Yanpu Metal | Anhui Huaren vs. Bank of Communications | Anhui Huaren vs. Fiberhome Telecommunication Technologies | Anhui Huaren vs. Jilin Jlu Communication |
| Dawning Information vs. Jiahe Foods Industry | Dawning Information vs. Xiwang Foodstuffs Co | Dawning Information vs. Shenzhen AV Display Co | Dawning Information vs. Lootom Telcovideo Network |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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