Correlation Between Zhejiang Daily and Anhui Huaheng
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By analyzing existing cross correlation between Zhejiang Daily Media and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Zhejiang Daily 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 Zhejiang Daily with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Daily and Anhui Huaheng.
Diversification Opportunities for Zhejiang Daily and Anhui Huaheng
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Anhui is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Daily Media 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 Zhejiang Daily 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 Zhejiang Daily Media 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 Zhejiang Daily i.e., Zhejiang Daily and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Zhejiang Daily and Anhui Huaheng
Assuming the 90 days trading horizon Zhejiang Daily Media is expected to generate 1.17 times more return on investment than Anhui Huaheng. However, Zhejiang Daily is 1.17 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.01 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.2 per unit of risk. If you would invest 1,096 in Zhejiang Daily Media on September 30, 2024 and sell it today you would lose (10.00) from holding Zhejiang Daily Media or give up 0.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Daily Media vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Zhejiang Daily Media |
| Anhui Huaheng Biotec |
Zhejiang Daily and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Daily and Anhui Huaheng
The main advantage of trading using opposite Zhejiang Daily and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Daily 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.| Zhejiang Daily vs. Vanfund Urban Investment | Zhejiang Daily vs. Dazhong Transportation Group | Zhejiang Daily vs. Hunan Investment Group | Zhejiang Daily vs. Zoje Resources Investment |
| 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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