Correlation Between Rising Nonferrous and Anhui Huaren
Specify exactly 2 symbols:
By analyzing existing cross correlation between Rising Nonferrous Metals and Anhui Huaren Health, you can compare the effects of market volatilities on Rising Nonferrous and Anhui Huaren 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 Rising Nonferrous with a short position of Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rising Nonferrous and Anhui Huaren.
Diversification Opportunities for Rising Nonferrous and Anhui Huaren
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Rising and Anhui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Rising Nonferrous Metals and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health and Rising Nonferrous 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 Rising Nonferrous Metals are associated (or correlated) with Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of Rising Nonferrous i.e., Rising Nonferrous and Anhui Huaren go up and down completely randomly.
Pair Corralation between Rising Nonferrous and Anhui Huaren
Assuming the 90 days trading horizon Rising Nonferrous Metals is expected to under-perform the Anhui Huaren. But the stock apears to be less risky and, when comparing its historical volatility, Rising Nonferrous Metals is 1.18 times less risky than Anhui Huaren. The stock trades about -0.23 of its potential returns per unit of risk. The Anhui Huaren Health is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 1,307 in Anhui Huaren Health on September 12, 2024 and sell it today you would lose (87.00) from holding Anhui Huaren Health or give up 6.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rising Nonferrous Metals vs. Anhui Huaren Health
Performance |
| Timeline |
| Rising Nonferrous Metals |
| Anhui Huaren Health |
Rising Nonferrous and Anhui Huaren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rising Nonferrous and Anhui Huaren
The main advantage of trading using opposite Rising Nonferrous and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rising Nonferrous position performs unexpectedly, Anhui Huaren 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 Huaren will offset losses from the drop in Anhui Huaren's long position.| Rising Nonferrous vs. Zijin Mining Group | Rising Nonferrous vs. Wanhua Chemical Group | Rising Nonferrous vs. Baoshan Iron Steel | Rising Nonferrous vs. Rongsheng Petrochemical Co |
| Anhui Huaren vs. China Petroleum Chemical | Anhui Huaren vs. PetroChina Co Ltd | Anhui Huaren vs. China State Construction | Anhui Huaren vs. China Railway 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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |