Correlation Between Allied Machinery and Anhui Huilong
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By analyzing existing cross correlation between Allied Machinery Co and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Allied Machinery 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 Allied Machinery with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Anhui Huilong.
Diversification Opportunities for Allied Machinery and Anhui Huilong
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Allied and Anhui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co 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 Allied Machinery 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 Allied Machinery Co 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 Allied Machinery i.e., Allied Machinery and Anhui Huilong go up and down completely randomly.
Pair Corralation between Allied Machinery and Anhui Huilong
Assuming the 90 days trading horizon Allied Machinery Co is expected to under-perform the Anhui Huilong. In addition to that, Allied Machinery is 1.09 times more volatile than Anhui Huilong Agricultural. It trades about -0.02 of its total potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.01 per unit of volatility. If you would invest 842.00 in Anhui Huilong Agricultural on September 4, 2024 and sell it today you would lose (193.00) from holding Anhui Huilong Agricultural or give up 22.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Allied Machinery |
| Anhui Huilong Agricu |
Allied Machinery and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Anhui Huilong
The main advantage of trading using opposite Allied Machinery and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery 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.| Allied Machinery vs. Chengdu Kanghua Biological | Allied Machinery vs. Beijing Wantai Biological | Allied Machinery vs. Suzhou Novoprotein Scientific | Allied Machinery vs. Aluminum Corp of |
| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Rongsheng Petrochemical Co |
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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