Correlation Between Anhui Huaren and Beijing Wantai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huaren Health and Beijing Wantai Biological, you can compare the effects of market volatilities on Anhui Huaren and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Beijing Wantai.
Diversification Opportunities for Anhui Huaren and Beijing Wantai
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Beijing is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Beijing Wantai go up and down completely randomly.
Pair Corralation between Anhui Huaren and Beijing Wantai
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the Beijing Wantai. In addition to that, Anhui Huaren is 1.07 times more volatile than Beijing Wantai Biological. It trades about -0.04 of its total potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.01 per unit of volatility. If you would invest 9,655 in Beijing Wantai Biological on September 4, 2024 and sell it today you would lose (2,405) from holding Beijing Wantai Biological or give up 24.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 89.73% |
| Values | Daily Returns |
Anhui Huaren Health vs. Beijing Wantai Biological
Performance |
| Timeline |
| Anhui Huaren Health |
| Beijing Wantai Biological |
Anhui Huaren and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Beijing Wantai
The main advantage of trading using opposite Anhui Huaren and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Anhui Huaren vs. Sportsoul Co Ltd | Anhui Huaren vs. Rising Nonferrous Metals | Anhui Huaren vs. China Life Insurance | Anhui Huaren vs. Shanghai Metersbonwe FashionAccessories |
| Beijing Wantai vs. Hubeiyichang Transportation Group | Beijing Wantai vs. Jiangsu Jinling Sports | Beijing Wantai vs. Sino Platinum Metals Co | Beijing Wantai vs. Qinghaihuading Industrial Co |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |