Correlation Between Hunan Tyen and Anhui Huilong
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By analyzing existing cross correlation between Hunan Tyen Machinery and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Hunan Tyen 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 Hunan Tyen with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Tyen and Anhui Huilong.
Diversification Opportunities for Hunan Tyen and Anhui Huilong
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hunan and Anhui is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Tyen Machinery 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 Hunan Tyen 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 Hunan Tyen Machinery 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 Hunan Tyen i.e., Hunan Tyen and Anhui Huilong go up and down completely randomly.
Pair Corralation between Hunan Tyen and Anhui Huilong
Assuming the 90 days trading horizon Hunan Tyen Machinery is expected to generate 1.13 times more return on investment than Anhui Huilong. However, Hunan Tyen is 1.13 times more volatile than Anhui Huilong Agricultural. It trades about 0.05 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about 0.03 per unit of risk. If you would invest 407.00 in Hunan Tyen Machinery on October 12, 2024 and sell it today you would earn a total of 100.00 from holding Hunan Tyen Machinery or generate 24.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Tyen Machinery vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Hunan Tyen Machinery |
| Anhui Huilong Agricu |
Hunan Tyen and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Tyen and Anhui Huilong
The main advantage of trading using opposite Hunan Tyen and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Tyen 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.| Hunan Tyen vs. Postal Savings Bank | Hunan Tyen vs. Chengdu Spaceon Electronics | Hunan Tyen vs. Ningbo Tech Bank Co | Hunan Tyen vs. Xiamen Bank Co |
| Anhui Huilong vs. Ingenic Semiconductor | Anhui Huilong vs. Uroica Mining Safety | Anhui Huilong vs. Shengda Mining Co | Anhui Huilong vs. Thinkon Semiconductor Jinzhou |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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