Correlation Between Anhui Huaheng and Chengdu Kanghua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Anhui Huaheng and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Chengdu Kanghua.
Diversification Opportunities for Anhui Huaheng and Chengdu Kanghua
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Chengdu is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Chengdu Kanghua
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Chengdu Kanghua. In addition to that, Anhui Huaheng is 1.05 times more volatile than Chengdu Kanghua Biological. It trades about -0.4 of its total potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about -0.31 per unit of volatility. If you would invest 5,797 in Chengdu Kanghua Biological on October 25, 2024 and sell it today you would lose (688.00) from holding Chengdu Kanghua Biological or give up 11.87% 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. Chengdu Kanghua Biological
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Chengdu Kanghua Biol |
Anhui Huaheng and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Chengdu Kanghua
The main advantage of trading using opposite Anhui Huaheng and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua'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 |
| Chengdu Kanghua vs. Tongding Interconnection Information | Chengdu Kanghua vs. Invengo Information Technology | Chengdu Kanghua vs. Spring Airlines Co | Chengdu Kanghua vs. Hygon Information Technology |
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 CEOs Directory module to screen CEOs from public companies around the world.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |