Correlation Between Anhui Huaheng and Jiangsu Yanghe
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Anhui Huaheng and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Jiangsu Yanghe.
Diversification Opportunities for Anhui Huaheng and Jiangsu Yanghe
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Jiangsu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Jiangsu Yanghe
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Jiangsu Yanghe. In addition to that, Anhui Huaheng is 1.78 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.55 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.25 per unit of volatility. If you would invest 8,564 in Jiangsu Yanghe Brewery on October 11, 2024 and sell it today you would lose (554.00) from holding Jiangsu Yanghe Brewery or give up 6.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Jiangsu Yanghe Brewery |
Anhui Huaheng and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Jiangsu Yanghe
The main advantage of trading using opposite Anhui Huaheng and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Anhui Huaheng vs. Dareway Software Co | Anhui Huaheng vs. Jiangsu GDK Biotechnology | Anhui Huaheng vs. Guangdong Marubi Biotechnology | Anhui Huaheng vs. Glodon Software Co |
| Jiangsu Yanghe vs. Jiangyin Haida Rubber | Jiangsu Yanghe vs. Southchip Semiconductor Technology | Jiangsu Yanghe vs. StarPower Semiconductor | Jiangsu Yanghe vs. Shanghai Phichem Material |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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