Correlation Between Anhui Huaheng and Cultural Investment
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Cultural Investment Holdings, you can compare the effects of market volatilities on Anhui Huaheng and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Cultural Investment.
Diversification Opportunities for Anhui Huaheng and Cultural Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Cultural is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Cultural Investment go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Cultural Investment
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Cultural Investment. In addition to that, Anhui Huaheng is 1.07 times more volatile than Cultural Investment Holdings. It trades about -0.12 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.04 per unit of volatility. If you would invest 300.00 in Cultural Investment Holdings on October 25, 2024 and sell it today you would lose (95.00) from holding Cultural Investment Holdings or give up 31.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Cultural Investment Holdings
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Cultural Investment |
Anhui Huaheng and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Cultural Investment
The main advantage of trading using opposite Anhui Huaheng and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. Yingde Greatchem Chemicals | Cultural Investment vs. MayAir Technology Co | Cultural Investment vs. Beijing Kingsoft Office | Cultural Investment vs. Southchip Semiconductor 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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