Correlation Between Industrial and Anhui Huaheng
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By analyzing existing cross correlation between Industrial and Commercial and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anhui Huaheng.
Diversification Opportunities for Industrial and Anhui Huaheng
-0.04 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Anhui is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Industrial and Anhui Huaheng
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.56 times more return on investment than Anhui Huaheng. However, Industrial and Commercial is 1.79 times less risky than Anhui Huaheng. It trades about 0.43 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.12 per unit of risk. If you would invest 619.00 in Industrial and Commercial on September 29, 2024 and sell it today you would earn a total of 73.00 from holding Industrial and Commercial or generate 11.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Industrial and Commercial |
| Anhui Huaheng Biotec |
Industrial and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Anhui Huaheng
The main advantage of trading using opposite Industrial and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. State Grid InformationCommunication | Industrial vs. Shanghai Ziyan Foods | Industrial vs. Anji Foodstuff Co | Industrial vs. Quectel Wireless Solutions |
| 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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