Correlation Between Huitong Construction and Anhui Huilong
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By analyzing existing cross correlation between Huitong Construction Group and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Huitong Construction and Anhui Huilong 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 Huitong Construction with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Anhui Huilong.
Diversification Opportunities for Huitong Construction and Anhui Huilong
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Huitong and Anhui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group and Anhui Huilong Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huilong Agricu and Huitong Construction 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 Huitong Construction Group are associated (or correlated) with Anhui Huilong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huilong Agricu has no effect on the direction of Huitong Construction i.e., Huitong Construction and Anhui Huilong go up and down completely randomly.
Pair Corralation between Huitong Construction and Anhui Huilong
Assuming the 90 days trading horizon Huitong Construction Group is expected to generate 1.14 times more return on investment than Anhui Huilong. However, Huitong Construction is 1.14 times more volatile than Anhui Huilong Agricultural. It trades about -0.02 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.02 per unit of risk. If you would invest 733.00 in Huitong Construction Group on November 27, 2024 and sell it today you would lose (224.00) from holding Huitong Construction Group or give up 30.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Huitong Construction Group vs. Anhui Huilong Agricultural
Performance |
Timeline |
Huitong Construction |
Anhui Huilong Agricu |
Huitong Construction and Anhui Huilong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Huitong Construction and Anhui Huilong
The main advantage of trading using opposite Huitong Construction and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction position performs unexpectedly, Anhui Huilong 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 Huilong will offset losses from the drop in Anhui Huilong's long position.Huitong Construction vs. PKU HealthCare Corp | Huitong Construction vs. Humanwell Healthcare Group | Huitong Construction vs. Guangzhou Seagull Kitchen | Huitong Construction vs. SSAW Hotels Resorts |
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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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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