Correlation Between Anhui Liuguo and Wanhua Chemical
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Liuguo Chemical and Wanhua Chemical Group, you can compare the effects of market volatilities on Anhui Liuguo and Wanhua Chemical 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 Wanhua Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Liuguo and Wanhua Chemical.
Diversification Opportunities for Anhui Liuguo and Wanhua Chemical
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Wanhua is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Liuguo Chemical and Wanhua Chemical Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wanhua Chemical Group 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 Wanhua Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wanhua Chemical Group has no effect on the direction of Anhui Liuguo i.e., Anhui Liuguo and Wanhua Chemical go up and down completely randomly.
Pair Corralation between Anhui Liuguo and Wanhua Chemical
Assuming the 90 days trading horizon Anhui Liuguo Chemical is expected to generate 1.64 times more return on investment than Wanhua Chemical. However, Anhui Liuguo is 1.64 times more volatile than Wanhua Chemical Group. It trades about 0.02 of its potential returns per unit of risk. Wanhua Chemical Group is currently generating about -0.02 per unit of risk. If you would invest 598.00 in Anhui Liuguo Chemical on September 12, 2024 and sell it today you would earn a total of 40.00 from holding Anhui Liuguo Chemical or generate 6.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Liuguo Chemical vs. Wanhua Chemical Group
Performance |
| Timeline |
| Anhui Liuguo Chemical |
| Wanhua Chemical Group |
Anhui Liuguo and Wanhua Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Liuguo and Wanhua Chemical
The main advantage of trading using opposite Anhui Liuguo and Wanhua Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Liuguo position performs unexpectedly, Wanhua Chemical 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 Wanhua Chemical will offset losses from the drop in Wanhua Chemical's long position.| Anhui Liuguo vs. ButOne Information Corp | Anhui Liuguo vs. Do Fluoride Chemicals Co | Anhui Liuguo vs. Dymatic Chemicals | Anhui Liuguo vs. Focus Media Information |
| Wanhua Chemical vs. Zijin Mining Group | Wanhua Chemical vs. Baoshan Iron Steel | Wanhua Chemical vs. Rongsheng Petrochemical Co | Wanhua Chemical vs. Hoshine Silicon Ind |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |