Correlation Between Anhui Huaheng and Hengli Industrial
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Hengli Industrial Development, you can compare the effects of market volatilities on Anhui Huaheng and Hengli Industrial 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 Hengli Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Hengli Industrial.
Diversification Opportunities for Anhui Huaheng and Hengli Industrial
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Hengli is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Hengli Industrial Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hengli Industrial 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 Hengli Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hengli Industrial has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Hengli Industrial go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Hengli Industrial
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Hengli Industrial. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.64 times less risky than Hengli Industrial. The stock trades about -0.22 of its potential returns per unit of risk. The Hengli Industrial Development is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Hengli Industrial Development on November 6, 2024 and sell it today you would earn a total of 19.00 from holding Hengli Industrial Development or generate 9.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Hengli Industrial Development
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Hengli Industrial |
Anhui Huaheng and Hengli Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Hengli Industrial
The main advantage of trading using opposite Anhui Huaheng and Hengli Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Hengli Industrial 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 Hengli Industrial will offset losses from the drop in Hengli Industrial's long position.| Anhui Huaheng vs. Sinofibers Technology Co | Anhui Huaheng vs. Hengli Petrochemical Co | Anhui Huaheng vs. Marssenger Kitchenware Co | Anhui Huaheng vs. Yindu Kitchen Equipment |
| Hengli Industrial vs. Jinhe Biotechnology Co | Hengli Industrial vs. GreenTech Environmental Co | Hengli Industrial vs. Holitech Technology Co | Hengli Industrial vs. Kangping Technology 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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