Correlation Between HUAQIN TECHNOLOGY and Anhui Jianghuai
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By analyzing existing cross correlation between HUAQIN TECHNOLOGY LTD and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on HUAQIN TECHNOLOGY and Anhui Jianghuai 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 HUAQIN TECHNOLOGY with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of HUAQIN TECHNOLOGY and Anhui Jianghuai.
Diversification Opportunities for HUAQIN TECHNOLOGY and Anhui Jianghuai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between HUAQIN and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding HUAQIN TECHNOLOGY LTD and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and HUAQIN TECHNOLOGY 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 HUAQIN TECHNOLOGY LTD are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of HUAQIN TECHNOLOGY i.e., HUAQIN TECHNOLOGY and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between HUAQIN TECHNOLOGY and Anhui Jianghuai
Assuming the 90 days trading horizon HUAQIN TECHNOLOGY LTD is expected to generate 0.7 times more return on investment than Anhui Jianghuai. However, HUAQIN TECHNOLOGY LTD is 1.42 times less risky than Anhui Jianghuai. It trades about -0.02 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about -0.15 per unit of risk. If you would invest 6,328 in HUAQIN TECHNOLOGY LTD on September 13, 2024 and sell it today you would lose (139.00) from holding HUAQIN TECHNOLOGY LTD or give up 2.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
HUAQIN TECHNOLOGY LTD vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| HUAQIN TECHNOLOGY LTD |
| Anhui Jianghuai Auto |
HUAQIN TECHNOLOGY and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HUAQIN TECHNOLOGY and Anhui Jianghuai
The main advantage of trading using opposite HUAQIN TECHNOLOGY and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HUAQIN TECHNOLOGY position performs unexpectedly, Anhui Jianghuai 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 Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| HUAQIN TECHNOLOGY vs. Andon Health Co | HUAQIN TECHNOLOGY vs. Eastern Communications Co | HUAQIN TECHNOLOGY vs. Zhongtong Guomai Communication | HUAQIN TECHNOLOGY vs. Citic Guoan Wine |
| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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