Correlation Between China International and Huasi Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between China International Capital and Huasi Agricultural Development, you can compare the effects of market volatilities on China International and Huasi Agricultural 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 International with a short position of Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Huasi Agricultural.
Diversification Opportunities for China International and Huasi Agricultural
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Huasi is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural and China International 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 International Capital are associated (or correlated) with Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of China International i.e., China International and Huasi Agricultural go up and down completely randomly.
Pair Corralation between China International and Huasi Agricultural
Assuming the 90 days trading horizon China International Capital is expected to generate 1.57 times more return on investment than Huasi Agricultural. However, China International is 1.57 times more volatile than Huasi Agricultural Development. It trades about 0.34 of its potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.23 per unit of risk. If you would invest 3,143 in China International Capital on November 29, 2024 and sell it today you would earn a total of 500.00 from holding China International Capital or generate 15.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Huasi Agricultural Development
Performance |
| Timeline |
| China International |
| Huasi Agricultural |
China International and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Huasi Agricultural
The main advantage of trading using opposite China International and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| China International vs. Sanbo Hospital Management | China International vs. YLZ Information Tech | China International vs. AVIC Fund Management | China International vs. AVCON Information Tech |
| Huasi Agricultural vs. Guangdong Jingyi Metal | Huasi Agricultural vs. Zotye Automobile Co | Huasi Agricultural vs. China Sports Industry | Huasi Agricultural vs. Shenzhen Urban Transport |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |