Correlation Between Anhui Xinhua and Hygon Information
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By analyzing existing cross correlation between Anhui Xinhua Media and Hygon Information Technology, you can compare the effects of market volatilities on Anhui Xinhua and Hygon Information 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 Hygon Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Hygon Information.
Diversification Opportunities for Anhui Xinhua and Hygon Information
-0.12 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Hygon is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Hygon Information Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hygon Information 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 Hygon Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hygon Information has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Hygon Information go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Hygon Information
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 0.53 times more return on investment than Hygon Information. However, Anhui Xinhua Media is 1.88 times less risky than Hygon Information. It trades about -0.19 of its potential returns per unit of risk. Hygon Information Technology is currently generating about -0.24 per unit of risk. If you would invest 730.00 in Anhui Xinhua Media on October 27, 2024 and sell it today you would lose (57.00) from holding Anhui Xinhua Media or give up 7.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Hygon Information Technology
Performance |
| Timeline |
| Anhui Xinhua Media |
| Hygon Information |
Anhui Xinhua and Hygon Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Hygon Information
The main advantage of trading using opposite Anhui Xinhua and Hygon Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Hygon Information 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 Hygon Information will offset losses from the drop in Hygon Information's long position.| Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. China Mobile Limited | Anhui Xinhua vs. CNOOC Limited | Anhui Xinhua vs. Ping An Insurance |
| Hygon Information vs. Agricultural Bank of | Hygon Information vs. Industrial and Commercial | Hygon Information vs. Bank of China | Hygon Information vs. China Construction Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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