Correlation Between Anhui Huaheng and Zhejiang Construction
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Zhejiang Construction Investment, you can compare the effects of market volatilities on Anhui Huaheng and Zhejiang Construction 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 Zhejiang Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Zhejiang Construction.
Diversification Opportunities for Anhui Huaheng and Zhejiang Construction
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Zhejiang Construction Investme in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Construction 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 Zhejiang Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Construction has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Zhejiang Construction go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Zhejiang Construction
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Zhejiang Construction. In addition to that, Anhui Huaheng is 1.09 times more volatile than Zhejiang Construction Investment. It trades about -0.4 of its total potential returns per unit of risk. Zhejiang Construction Investment is currently generating about -0.37 per unit of volatility. If you would invest 941.00 in Zhejiang Construction Investment on October 25, 2024 and sell it today you would lose (127.00) from holding Zhejiang Construction Investment or give up 13.5% 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. Zhejiang Construction Investme
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Zhejiang Construction |
Anhui Huaheng and Zhejiang Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Zhejiang Construction
The main advantage of trading using opposite Anhui Huaheng and Zhejiang Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Zhejiang Construction 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 Zhejiang Construction will offset losses from the drop in Zhejiang Construction's 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 |
| Zhejiang Construction vs. Dareway Software Co | Zhejiang Construction vs. Impulse Qingdao Health | Zhejiang Construction vs. Hangzhou Pinming Software | Zhejiang Construction vs. Youngy Health 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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