Correlation Between Anhui Huaren and Zhongyin Babi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huaren Health and Zhongyin Babi Food, you can compare the effects of market volatilities on Anhui Huaren and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and Zhongyin Babi.
Diversification Opportunities for Anhui Huaren and Zhongyin Babi
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Zhongyin is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Anhui Huaren and Zhongyin Babi
Assuming the 90 days trading horizon Anhui Huaren Health is expected to generate 1.08 times more return on investment than Zhongyin Babi. However, Anhui Huaren is 1.08 times more volatile than Zhongyin Babi Food. It trades about -0.44 of its potential returns per unit of risk. Zhongyin Babi Food is currently generating about -0.52 per unit of risk. If you would invest 1,332 in Anhui Huaren Health on October 14, 2024 and sell it today you would lose (295.00) from holding Anhui Huaren Health or give up 22.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. Zhongyin Babi Food
Performance |
| Timeline |
| Anhui Huaren Health |
| Zhongyin Babi Food |
Anhui Huaren and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and Zhongyin Babi
The main advantage of trading using opposite Anhui Huaren and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Anhui Huaren vs. Lecron Energy Saving | Anhui Huaren vs. Citic Guoan Wine | Anhui Huaren vs. GRG Banking Equipment | Anhui Huaren vs. Anhui Gujing Distillery |
| Zhongyin Babi vs. China World Trade | Zhongyin Babi vs. Yingde Greatchem Chemicals | Zhongyin Babi vs. Do Fluoride Chemicals Co | Zhongyin Babi vs. Huatian Hotel Group |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites |