Correlation Between Liuzhou Chemical and Anhui Huilong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Liuzhou Chemical Industry and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Liuzhou Chemical and Anhui Huilong 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 Liuzhou Chemical with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Liuzhou Chemical and Anhui Huilong.
Diversification Opportunities for Liuzhou Chemical and Anhui Huilong
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Liuzhou and Anhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Liuzhou Chemical Industry and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Liuzhou Chemical 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 Liuzhou Chemical Industry are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Liuzhou Chemical i.e., Liuzhou Chemical and Anhui Huilong go up and down completely randomly.
Pair Corralation between Liuzhou Chemical and Anhui Huilong
Assuming the 90 days trading horizon Liuzhou Chemical Industry is expected to generate 1.47 times more return on investment than Anhui Huilong. However, Liuzhou Chemical is 1.47 times more volatile than Anhui Huilong Agricultural. It trades about -0.06 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.23 per unit of risk. If you would invest 306.00 in Liuzhou Chemical Industry on September 29, 2024 and sell it today you would lose (13.00) from holding Liuzhou Chemical Industry or give up 4.25% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Liuzhou Chemical Industry vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Liuzhou Chemical Industry |
| Anhui Huilong Agricu |
Liuzhou Chemical and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Liuzhou Chemical and Anhui Huilong
The main advantage of trading using opposite Liuzhou Chemical and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Liuzhou Chemical position performs unexpectedly, Anhui Huilong 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 Huilong will offset losses from the drop in Anhui Huilong's long position.| Liuzhou Chemical vs. Zijin Mining Group | Liuzhou Chemical vs. Wanhua Chemical Group | Liuzhou Chemical vs. Baoshan Iron Steel | Liuzhou Chemical vs. Shandong Gold Mining |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |