Correlation Between Bank of China and Anhui Huaheng
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By analyzing existing cross correlation between Bank of China and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Bank of China 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 Bank of China with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of China and Anhui Huaheng.
Diversification Opportunities for Bank of China and Anhui Huaheng
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Bank and Anhui is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Bank of China 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 Bank of China 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 Bank of China 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 Bank of China i.e., Bank of China and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Bank of China and Anhui Huaheng
Assuming the 90 days trading horizon Bank of China is expected to generate 0.44 times more return on investment than Anhui Huaheng. However, Bank of China is 2.3 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 503.00 in Bank of China on September 29, 2024 and sell it today you would earn a total of 45.00 from holding Bank of China or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of China vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Bank of China |
| Anhui Huaheng Biotec |
Bank of China and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of China and Anhui Huaheng
The main advantage of trading using opposite Bank of China and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of China 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.| Bank of China vs. Anhui Huaheng Biotechnology | Bank of China vs. Maccura Biotechnology Co | Bank of China vs. Masterwork Machinery | Bank of China vs. Bloomage Biotechnology Corp |
| 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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