Correlation Between China State and Anhui Huaheng
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By analyzing existing cross correlation between China State Construction and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on China State 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 China State with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Anhui Huaheng.
Diversification Opportunities for China State and Anhui Huaheng
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Anhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Anhui Huaheng go up and down completely randomly.
Pair Corralation between China State and Anhui Huaheng
Assuming the 90 days trading horizon China State Construction is expected to generate 0.59 times more return on investment than Anhui Huaheng. However, China State Construction is 1.69 times less risky than Anhui Huaheng. It trades about 0.02 of its potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.06 per unit of risk. If you would invest 517.00 in China State Construction on October 28, 2024 and sell it today you would earn a total of 42.00 from holding China State Construction or generate 8.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China State Construction vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| China State Construction |
| Anhui Huaheng Biotec |
China State and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Anhui Huaheng
The main advantage of trading using opposite China State and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Soochow Suzhou Industrial | China State vs. China Asset Management | China State vs. Xinjiang Baodi Mining | China State vs. JCHX Mining Management |
| Anhui Huaheng vs. StarPower Semiconductor | Anhui Huaheng vs. Giantec Semiconductor Corp | Anhui Huaheng vs. Puya Semiconductor Shanghai | Anhui Huaheng vs. Sportsoul Co Ltd |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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