Correlation Between Shanghai Broadband and Anhui Huaheng
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By analyzing existing cross correlation between Shanghai Broadband Technology and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Shanghai Broadband and Anhui Huaheng 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 Shanghai Broadband with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Broadband and Anhui Huaheng.
Diversification Opportunities for Shanghai Broadband and Anhui Huaheng
-0.15 | Correlation Coefficient |
Good diversification
The 3 months correlation between Shanghai and Anhui is -0.15. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Broadband Technology and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec and Shanghai Broadband 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 Shanghai Broadband Technology are associated (or correlated) with Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Shanghai Broadband i.e., Shanghai Broadband and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Shanghai Broadband and Anhui Huaheng
Assuming the 90 days trading horizon Shanghai Broadband Technology is expected to under-perform the Anhui Huaheng. In addition to that, Shanghai Broadband is 1.45 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.17 of its total potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.17 per unit of volatility. If you would invest 3,555 in Anhui Huaheng Biotechnology on September 28, 2024 and sell it today you would lose (294.00) from holding Anhui Huaheng Biotechnology or give up 8.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Broadband Technology vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Shanghai Broadband |
| Anhui Huaheng Biotec |
Shanghai Broadband and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Broadband and Anhui Huaheng
The main advantage of trading using opposite Shanghai Broadband and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Broadband position performs unexpectedly, Anhui Huaheng 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 Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Shanghai Broadband vs. Suofeiya Home Collection | Shanghai Broadband vs. Shanghai Shuixing Home | Shanghai Broadband vs. Jilin Jlu Communication | Shanghai Broadband vs. Dr Peng Telecom |
| Anhui Huaheng vs. Industrial and Commercial | Anhui Huaheng vs. Agricultural Bank of | Anhui Huaheng vs. China Construction Bank | Anhui Huaheng vs. Bank of China |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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