Correlation Between Hengli Petrochemical and Anhui Jinhe
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By analyzing existing cross correlation between Hengli Petrochemical Co and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Hengli Petrochemical and Anhui Jinhe 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 Hengli Petrochemical with a short position of Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Petrochemical and Anhui Jinhe.
Diversification Opportunities for Hengli Petrochemical and Anhui Jinhe
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hengli and Anhui is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Petrochemical Co and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial and Hengli Petrochemical 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 Hengli Petrochemical Co are associated (or correlated) with Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Hengli Petrochemical i.e., Hengli Petrochemical and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Hengli Petrochemical and Anhui Jinhe
Assuming the 90 days trading horizon Hengli Petrochemical is expected to generate 21.66 times less return on investment than Anhui Jinhe. But when comparing it to its historical volatility, Hengli Petrochemical Co is 2.03 times less risky than Anhui Jinhe. It trades about 0.02 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,255 in Anhui Jinhe Industrial on November 3, 2024 and sell it today you would earn a total of 160.00 from holding Anhui Jinhe Industrial or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Petrochemical Co vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Hengli Petrochemical |
| Anhui Jinhe Industrial |
Hengli Petrochemical and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Petrochemical and Anhui Jinhe
The main advantage of trading using opposite Hengli Petrochemical and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Petrochemical position performs unexpectedly, Anhui Jinhe 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 Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Hengli Petrochemical vs. Zijin Mining Group | Hengli Petrochemical vs. Wanhua Chemical Group | Hengli Petrochemical vs. Baoshan Iron Steel | Hengli Petrochemical vs. Shandong Gold Mining |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Shandong Gold Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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