Correlation Between Hubei Xingfa and Anhui Conch
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By analyzing existing cross correlation between Hubei Xingfa Chemicals and Anhui Conch Cement, you can compare the effects of market volatilities on Hubei Xingfa and Anhui Conch 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 Hubei Xingfa with a short position of Anhui Conch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Xingfa and Anhui Conch.
Diversification Opportunities for Hubei Xingfa and Anhui Conch
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and Anhui is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Xingfa Chemicals and Anhui Conch Cement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Conch Cement and Hubei Xingfa 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 Hubei Xingfa Chemicals are associated (or correlated) with Anhui Conch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Conch Cement has no effect on the direction of Hubei Xingfa i.e., Hubei Xingfa and Anhui Conch go up and down completely randomly.
Pair Corralation between Hubei Xingfa and Anhui Conch
Assuming the 90 days trading horizon Hubei Xingfa Chemicals is expected to under-perform the Anhui Conch. In addition to that, Hubei Xingfa is 1.37 times more volatile than Anhui Conch Cement. It trades about -0.01 of its total potential returns per unit of risk. Anhui Conch Cement is currently generating about 0.0 per unit of volatility. If you would invest 2,671 in Anhui Conch Cement on September 13, 2024 and sell it today you would lose (106.00) from holding Anhui Conch Cement or give up 3.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Hubei Xingfa Chemicals vs. Anhui Conch Cement
Performance |
| Timeline |
| Hubei Xingfa Chemicals |
| Anhui Conch Cement |
Hubei Xingfa and Anhui Conch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Xingfa and Anhui Conch
The main advantage of trading using opposite Hubei Xingfa and Anhui Conch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Xingfa position performs unexpectedly, Anhui Conch 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 Anhui Conch will offset losses from the drop in Anhui Conch's long position.| Hubei Xingfa vs. Ningbo Tip Rubber | Hubei Xingfa vs. Suzhou Xingye Material | Hubei Xingfa vs. Maccura Biotechnology Co | Hubei Xingfa vs. Sinosteel Luonai Materials |
| Anhui Conch vs. Lotus Health Group | Anhui Conch vs. Jiugui Liquor Co | Anhui Conch vs. Hubei Xingfa Chemicals | Anhui Conch vs. Andon Health 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 Stocks Directory module to find actively traded stocks across global markets.
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