Correlation Between Anhui Huaheng and Sinomach Automobile
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Sinomach Automobile Co, you can compare the effects of market volatilities on Anhui Huaheng and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Sinomach Automobile.
Diversification Opportunities for Anhui Huaheng and Sinomach Automobile
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Sinomach is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Sinomach Automobile go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Sinomach Automobile
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Sinomach Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.54 times less risky than Sinomach Automobile. The stock trades about -0.58 of its potential returns per unit of risk. The Sinomach Automobile Co is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 672.00 in Sinomach Automobile Co on October 17, 2024 and sell it today you would lose (66.00) from holding Sinomach Automobile Co or give up 9.82% 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. Sinomach Automobile Co
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Sinomach Automobile |
Anhui Huaheng and Sinomach Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Sinomach Automobile
The main advantage of trading using opposite Anhui Huaheng and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile's long position.| Anhui Huaheng vs. Dongfeng Automobile Co | Anhui Huaheng vs. Chongqing Changan Automobile | Anhui Huaheng vs. Songz Automobile Air | Anhui Huaheng vs. Sinomach Automobile Co |
| Sinomach Automobile vs. GRINM Semiconductor Materials | Sinomach Automobile vs. Western Metal Materials | Sinomach Automobile vs. Tibet Huayu Mining | Sinomach Automobile vs. Shanghai V Test Semiconductor |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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