Correlation Between Anhui Transport and Zhejiang Hisoar
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By analyzing existing cross correlation between Anhui Transport Consulting and Zhejiang Hisoar Pharmaceutical, you can compare the effects of market volatilities on Anhui Transport and Zhejiang Hisoar 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 Anhui Transport with a short position of Zhejiang Hisoar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Zhejiang Hisoar.
Diversification Opportunities for Anhui Transport and Zhejiang Hisoar
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Zhejiang Hisoar Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Hisoar Phar and Anhui Transport 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 Anhui Transport Consulting are associated (or correlated) with Zhejiang Hisoar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Hisoar Phar has no effect on the direction of Anhui Transport i.e., Anhui Transport and Zhejiang Hisoar go up and down completely randomly.
Pair Corralation between Anhui Transport and Zhejiang Hisoar
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.74 times more return on investment than Zhejiang Hisoar. However, Anhui Transport Consulting is 1.34 times less risky than Zhejiang Hisoar. It trades about -0.11 of its potential returns per unit of risk. Zhejiang Hisoar Pharmaceutical is currently generating about -0.17 per unit of risk. If you would invest 903.00 in Anhui Transport Consulting on October 22, 2024 and sell it today you would lose (29.00) from holding Anhui Transport Consulting or give up 3.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Zhejiang Hisoar Pharmaceutical
Performance |
| Timeline |
| Anhui Transport Cons |
| Zhejiang Hisoar Phar |
Anhui Transport and Zhejiang Hisoar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Zhejiang Hisoar
The main advantage of trading using opposite Anhui Transport and Zhejiang Hisoar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Zhejiang Hisoar 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 Zhejiang Hisoar will offset losses from the drop in Zhejiang Hisoar's long position.| Anhui Transport vs. Heilongjiang Transport Development | Anhui Transport vs. Silkroad Visual Technology | Anhui Transport vs. Shenzhen Bioeasy Biotechnology | Anhui Transport vs. Fujian Wanchen Biotechnology |
| Zhejiang Hisoar vs. Chison Medical Technologies | Zhejiang Hisoar vs. Vats Liquor Chain | Zhejiang Hisoar vs. Offshore Oil Engineering | Zhejiang Hisoar vs. Metro Investment Development |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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