Correlation Between Anhui Huaheng and Zhongrun Resources
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Zhongrun Resources Investment, you can compare the effects of market volatilities on Anhui Huaheng and Zhongrun Resources 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 Huaheng with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Zhongrun Resources.
Diversification Opportunities for Anhui Huaheng and Zhongrun Resources
-0.63 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anhui and Zhongrun is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Anhui Huaheng 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 Huaheng Biotechnology are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Zhongrun Resources
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.98 times less risky than Zhongrun Resources. The stock trades about -0.4 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 383.00 in Zhongrun Resources Investment on October 25, 2024 and sell it today you would earn a total of 30.00 from holding Zhongrun Resources Investment or generate 7.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Zhongrun Resources |
Anhui Huaheng and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Zhongrun Resources
The main advantage of trading using opposite Anhui Huaheng and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Anhui Huaheng vs. Holitech Technology Co | Anhui Huaheng vs. Kangping Technology Co | Anhui Huaheng vs. Olympic Circuit Technology | Anhui Huaheng vs. HanS Laser Tech |
| Zhongrun Resources vs. Fujian Anjoy Foods | Zhongrun Resources vs. Eastroc Beverage Group | Zhongrun Resources vs. Xiwang Foodstuffs Co | Zhongrun Resources vs. Malion New Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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