Correlation Between Suzhou Weizhixiang and Anhui Huilong
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By analyzing existing cross correlation between Suzhou Weizhixiang Food and Anhui Huilong Agricultural, you can compare the effects of market volatilities on Suzhou Weizhixiang 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 Suzhou Weizhixiang with a short position of Anhui Huilong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Weizhixiang and Anhui Huilong.
Diversification Opportunities for Suzhou Weizhixiang and Anhui Huilong
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Suzhou and Anhui is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Weizhixiang Food 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 Suzhou Weizhixiang 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 Suzhou Weizhixiang Food 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 Suzhou Weizhixiang i.e., Suzhou Weizhixiang and Anhui Huilong go up and down completely randomly.
Pair Corralation between Suzhou Weizhixiang and Anhui Huilong
Assuming the 90 days trading horizon Suzhou Weizhixiang Food is expected to generate 2.16 times more return on investment than Anhui Huilong. However, Suzhou Weizhixiang is 2.16 times more volatile than Anhui Huilong Agricultural. It trades about -0.03 of its potential returns per unit of risk. Anhui Huilong Agricultural is currently generating about -0.2 per unit of risk. If you would invest 2,500 in Suzhou Weizhixiang Food on October 30, 2024 and sell it today you would lose (184.00) from holding Suzhou Weizhixiang Food or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Weizhixiang Food vs. Anhui Huilong Agricultural
Performance |
| Timeline |
| Suzhou Weizhixiang Food |
| Anhui Huilong Agricu |
Suzhou Weizhixiang and Anhui Huilong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Weizhixiang and Anhui Huilong
The main advantage of trading using opposite Suzhou Weizhixiang and Anhui Huilong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Weizhixiang 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.| Suzhou Weizhixiang vs. Fujian Wanchen Biotechnology | Suzhou Weizhixiang vs. Sichuan Hebang Biotechnology | Suzhou Weizhixiang vs. AUPU Home Style | Suzhou Weizhixiang vs. Shandong Sanyuan Biotechnology |
| Anhui Huilong vs. Zhejiang Qianjiang Motorcycle | Anhui Huilong vs. CIMC Vehicles Co | Anhui Huilong vs. Haima Automobile Group | Anhui Huilong vs. Caihong Display Devices |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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