Correlation Between Anhui Huaheng and Shanghai Broadband
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Shanghai Broadband Technology, you can compare the effects of market volatilities on Anhui Huaheng and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Shanghai Broadband.
Diversification Opportunities for Anhui Huaheng and Shanghai Broadband
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Shanghai is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Shanghai Broadband
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to generate 0.69 times more return on investment than Shanghai Broadband. However, Anhui Huaheng Biotechnology is 1.45 times less risky than Shanghai Broadband. It trades about -0.17 of its potential returns per unit of risk. Shanghai Broadband Technology is currently generating about -0.17 per unit of risk. If you would invest 3,555 in Anhui Huaheng Biotechnology on September 28, 2024 and sell it today you would lose (294.00) from holding Anhui Huaheng Biotechnology or give up 8.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Shanghai Broadband |
Anhui Huaheng and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Shanghai Broadband
The main advantage of trading using opposite Anhui Huaheng and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Anhui Huaheng vs. Industrial and Commercial | Anhui Huaheng vs. Agricultural Bank of | Anhui Huaheng vs. China Construction Bank | Anhui Huaheng vs. Bank of China |
| Shanghai Broadband vs. Zijin Mining Group | Shanghai Broadband vs. Wanhua Chemical Group | Shanghai Broadband vs. Baoshan Iron Steel | Shanghai Broadband vs. Shandong Gold Mining |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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