Correlation Between Jiangsu Yueda and Anhui Huaheng
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By analyzing existing cross correlation between Jiangsu Yueda Investment and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Jiangsu Yueda 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 Jiangsu Yueda with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and Anhui Huaheng.
Diversification Opportunities for Jiangsu Yueda and Anhui Huaheng
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Anhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment 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 Jiangsu Yueda 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 Jiangsu Yueda Investment 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 Jiangsu Yueda i.e., Jiangsu Yueda and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and Anhui Huaheng
Assuming the 90 days trading horizon Jiangsu Yueda Investment is expected to generate 0.87 times more return on investment than Anhui Huaheng. However, Jiangsu Yueda Investment is 1.15 times less risky than Anhui Huaheng. It trades about -0.07 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.4 per unit of risk. If you would invest 450.00 in Jiangsu Yueda Investment on October 25, 2024 and sell it today you would lose (13.00) from holding Jiangsu Yueda Investment or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| Anhui Huaheng Biotec |
Jiangsu Yueda and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and Anhui Huaheng
The main advantage of trading using opposite Jiangsu Yueda and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda 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.| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
| Anhui Huaheng vs. Holitech Technology Co | Anhui Huaheng vs. Kangping Technology Co | Anhui Huaheng vs. Olympic Circuit Technology | Anhui Huaheng vs. HanS Laser Tech |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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