Correlation Between Gem Year and Anhui Huaheng
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By analyzing existing cross correlation between Gem Year Industrial Co and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Gem Year 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 Gem Year with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gem Year and Anhui Huaheng.
Diversification Opportunities for Gem Year and Anhui Huaheng
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gem and Anhui is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Gem Year Industrial Co 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 Gem Year 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 Gem Year Industrial Co 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 Gem Year i.e., Gem Year and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Gem Year and Anhui Huaheng
Assuming the 90 days trading horizon Gem Year Industrial Co is expected to generate 1.0 times more return on investment than Anhui Huaheng. However, Gem Year is 1.0 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.27 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.45 per unit of risk. If you would invest 487.00 in Gem Year Industrial Co on October 10, 2024 and sell it today you would lose (63.00) from holding Gem Year Industrial Co or give up 12.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gem Year Industrial Co vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Gem Year Industrial |
| Anhui Huaheng Biotec |
Gem Year and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gem Year and Anhui Huaheng
The main advantage of trading using opposite Gem Year and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gem Year 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.| Gem Year vs. Bloomage Biotechnology Corp | Gem Year vs. Sichuan Hebang Biotechnology | Gem Year vs. Dezhan HealthCare Co | Gem Year vs. Shanghai Rongtai Health |
| Anhui Huaheng vs. Tongling Nonferrous Metals | Anhui Huaheng vs. Chongqing Shunbo Aluminum | Anhui Huaheng vs. Ningbo Fangzheng Automobile | Anhui Huaheng vs. Anhui Jianghuai Automobile |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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