Correlation Between Epoxy Base and Anhui Huaertai
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By analyzing existing cross correlation between Epoxy Base Electronic and Anhui Huaertai Chemical, you can compare the effects of market volatilities on Epoxy Base and Anhui Huaertai 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 Epoxy Base with a short position of Anhui Huaertai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Epoxy Base and Anhui Huaertai.
Diversification Opportunities for Epoxy Base and Anhui Huaertai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Epoxy and Anhui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Epoxy Base Electronic and Anhui Huaertai Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaertai Chemical and Epoxy Base 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 Epoxy Base Electronic are associated (or correlated) with Anhui Huaertai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaertai Chemical has no effect on the direction of Epoxy Base i.e., Epoxy Base and Anhui Huaertai go up and down completely randomly.
Pair Corralation between Epoxy Base and Anhui Huaertai
Assuming the 90 days trading horizon Epoxy Base is expected to generate 1.86 times less return on investment than Anhui Huaertai. In addition to that, Epoxy Base is 1.6 times more volatile than Anhui Huaertai Chemical. It trades about 0.11 of its total potential returns per unit of risk. Anhui Huaertai Chemical is currently generating about 0.34 per unit of volatility. If you would invest 1,072 in Anhui Huaertai Chemical on September 13, 2024 and sell it today you would earn a total of 303.00 from holding Anhui Huaertai Chemical or generate 28.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Epoxy Base Electronic vs. Anhui Huaertai Chemical
Performance |
| Timeline |
| Epoxy Base Electronic |
| Anhui Huaertai Chemical |
Epoxy Base and Anhui Huaertai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Epoxy Base and Anhui Huaertai
The main advantage of trading using opposite Epoxy Base and Anhui Huaertai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Epoxy Base position performs unexpectedly, Anhui Huaertai 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 Huaertai will offset losses from the drop in Anhui Huaertai's long position.| Epoxy Base vs. Zijin Mining Group | Epoxy Base vs. Wanhua Chemical Group | Epoxy Base vs. Baoshan Iron Steel | Epoxy Base vs. Shandong Gold Mining |
| Anhui Huaertai vs. Dhc Software Co | Anhui Huaertai vs. HUAQIN TECHNOLOGY LTD | Anhui Huaertai vs. Nanxing Furniture Machinery | Anhui Huaertai vs. Western Superconducting Tech |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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