Correlation Between Anhui Huaren and High Tide
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By analyzing existing cross correlation between Anhui Huaren Health and High Tide, you can compare the effects of market volatilities on Anhui Huaren and High Tide 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 High Tide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and High Tide.
Diversification Opportunities for Anhui Huaren and High Tide
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and High is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health and High Tide in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on High Tide 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 High Tide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of High Tide has no effect on the direction of Anhui Huaren i.e., Anhui Huaren and High Tide go up and down completely randomly.
Pair Corralation between Anhui Huaren and High Tide
Assuming the 90 days trading horizon Anhui Huaren Health is expected to under-perform the High Tide. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaren Health is 1.21 times less risky than High Tide. The stock trades about -0.02 of its potential returns per unit of risk. The High Tide is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 188.00 in High Tide on November 9, 2024 and sell it today you would earn a total of 106.00 from holding High Tide or generate 56.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 94.76% |
| Values | Daily Returns |
Anhui Huaren Health vs. High Tide
Performance |
| Timeline |
| Anhui Huaren Health |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| High Tide |
Anhui Huaren and High Tide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and High Tide
The main advantage of trading using opposite Anhui Huaren and High Tide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren position performs unexpectedly, High Tide 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 High Tide will offset losses from the drop in High Tide's long position.The idea behind Anhui Huaren Health and High Tide pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| High Tide vs. SunLink Health Systems | High Tide vs. Kiaro Holdings Corp | High Tide vs. China Jo Jo Drugstores | High Tide vs. PetMed Express |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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