Correlation Between Anhui Xinhua and Zhongzhu Medical
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By analyzing existing cross correlation between Anhui Xinhua Media and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Anhui Xinhua and Zhongzhu Medical 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 Anhui Xinhua with a short position of Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Zhongzhu Medical.
Diversification Opportunities for Anhui Xinhua and Zhongzhu Medical
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Zhongzhu is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings and Anhui Xinhua 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 Anhui Xinhua Media are associated (or correlated) with Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Zhongzhu Medical
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 1.53 times more return on investment than Zhongzhu Medical. However, Anhui Xinhua is 1.53 times more volatile than Zhongzhu Medical Holdings. It trades about 0.03 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.03 per unit of risk. If you would invest 551.00 in Anhui Xinhua Media on October 16, 2024 and sell it today you would earn a total of 117.00 from holding Anhui Xinhua Media or generate 21.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Anhui Xinhua Media |
| Zhongzhu Medical Holdings |
Anhui Xinhua and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Zhongzhu Medical
The main advantage of trading using opposite Anhui Xinhua and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Anhui Xinhua vs. Zhongzhu Medical Holdings | Anhui Xinhua vs. Sharetronic Data Technology | Anhui Xinhua vs. Linewell Software Co | Anhui Xinhua vs. Tianshui Huatian Technology |
| Zhongzhu Medical vs. Harbin Hatou Investment | Zhongzhu Medical vs. TianJin 712 Communication | Zhongzhu Medical vs. Chengdu Xingrong Investment | Zhongzhu Medical vs. Zhangjiagang Freetrade Science |
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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