Correlation Between Anhui Huaheng and Fujian Boss
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Fujian Boss Software, you can compare the effects of market volatilities on Anhui Huaheng and Fujian Boss 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 Fujian Boss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Fujian Boss.
Diversification Opportunities for Anhui Huaheng and Fujian Boss
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Fujian is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Fujian Boss Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Boss Software 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 Fujian Boss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Boss Software has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Fujian Boss go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Fujian Boss
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Fujian Boss. In addition to that, Anhui Huaheng is 1.04 times more volatile than Fujian Boss Software. It trades about -0.55 of its total potential returns per unit of risk. Fujian Boss Software is currently generating about -0.54 per unit of volatility. If you would invest 1,775 in Fujian Boss Software on October 11, 2024 and sell it today you would lose (398.00) from holding Fujian Boss Software or give up 22.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Fujian Boss Software
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Fujian Boss Software |
Anhui Huaheng and Fujian Boss Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Fujian Boss
The main advantage of trading using opposite Anhui Huaheng and Fujian Boss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Fujian Boss 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 Fujian Boss will offset losses from the drop in Fujian Boss' 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 |
| Fujian Boss vs. Anhui Tongguan Copper | Fujian Boss vs. Shanghai CEO Environmental | Fujian Boss vs. Sanbo Hospital Management | Fujian Boss vs. Harvest Fund Management |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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