Correlation Between Anhui Liuguo and Hainan Shuangcheng
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By analyzing existing cross correlation between Anhui Liuguo Chemical and Hainan Shuangcheng Pharmaceut, you can compare the effects of market volatilities on Anhui Liuguo and Hainan Shuangcheng 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 Liuguo with a short position of Hainan Shuangcheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Liuguo and Hainan Shuangcheng.
Diversification Opportunities for Anhui Liuguo and Hainan Shuangcheng
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Hainan is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Liuguo Chemical and Hainan Shuangcheng Pharmaceut in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Shuangcheng and Anhui Liuguo 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 Liuguo Chemical are associated (or correlated) with Hainan Shuangcheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Shuangcheng has no effect on the direction of Anhui Liuguo i.e., Anhui Liuguo and Hainan Shuangcheng go up and down completely randomly.
Pair Corralation between Anhui Liuguo and Hainan Shuangcheng
Assuming the 90 days trading horizon Anhui Liuguo Chemical is expected to generate 0.91 times more return on investment than Hainan Shuangcheng. However, Anhui Liuguo Chemical is 1.1 times less risky than Hainan Shuangcheng. It trades about 0.2 of its potential returns per unit of risk. Hainan Shuangcheng Pharmaceut is currently generating about -0.16 per unit of risk. If you would invest 496.00 in Anhui Liuguo Chemical on September 3, 2024 and sell it today you would earn a total of 119.00 from holding Anhui Liuguo Chemical or generate 23.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Liuguo Chemical vs. Hainan Shuangcheng Pharmaceut
Performance |
| Timeline |
| Anhui Liuguo Chemical |
| Hainan Shuangcheng |
Anhui Liuguo and Hainan Shuangcheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Liuguo and Hainan Shuangcheng
The main advantage of trading using opposite Anhui Liuguo and Hainan Shuangcheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Liuguo position performs unexpectedly, Hainan Shuangcheng 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 Hainan Shuangcheng will offset losses from the drop in Hainan Shuangcheng's long position.| Anhui Liuguo vs. Zijin Mining Group | Anhui Liuguo vs. Baoshan Iron Steel | Anhui Liuguo vs. Rongsheng Petrochemical Co | Anhui Liuguo vs. Hoshine Silicon Ind |
| Hainan Shuangcheng vs. Miracll Chemicals Co | Hainan Shuangcheng vs. Youyou Foods Co | Hainan Shuangcheng vs. Anhui Liuguo Chemical | Hainan Shuangcheng vs. Xiwang Foodstuffs 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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