Correlation Between Anhui Huaheng and Jiangsu Yueda
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Jiangsu Yueda Investment, you can compare the effects of market volatilities on Anhui Huaheng and Jiangsu Yueda 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 Jiangsu Yueda. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Jiangsu Yueda.
Diversification Opportunities for Anhui Huaheng and Jiangsu Yueda
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Jiangsu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Jiangsu Yueda Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yueda 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 Jiangsu Yueda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yueda Investment has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Jiangsu Yueda go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Jiangsu Yueda
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Jiangsu Yueda. In addition to that, Anhui Huaheng is 1.15 times more volatile than Jiangsu Yueda Investment. It trades about -0.4 of its total potential returns per unit of risk. Jiangsu Yueda Investment is currently generating about -0.07 per unit of volatility. If you would invest 450.00 in Jiangsu Yueda Investment on October 25, 2024 and sell it today you would lose (13.00) from holding Jiangsu Yueda Investment or give up 2.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Jiangsu Yueda Investment
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Jiangsu Yueda Investment |
Anhui Huaheng and Jiangsu Yueda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Jiangsu Yueda
The main advantage of trading using opposite Anhui Huaheng and Jiangsu Yueda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Jiangsu Yueda 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 Jiangsu Yueda will offset losses from the drop in Jiangsu Yueda'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 |
| Jiangsu Yueda vs. Kweichow Moutai Co | Jiangsu Yueda vs. Contemporary Amperex Technology | Jiangsu Yueda vs. Beijing Roborock Technology | Jiangsu Yueda vs. BYD Co Ltd |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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