Correlation Between Anhui Huaheng and Xinhua Winshare
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Xinhua Winshare Publishing, you can compare the effects of market volatilities on Anhui Huaheng and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Xinhua Winshare.
Diversification Opportunities for Anhui Huaheng and Xinhua Winshare
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Xinhua is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Xinhua Winshare go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Xinhua Winshare
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Xinhua Winshare. In addition to that, Anhui Huaheng is 1.36 times more volatile than Xinhua Winshare Publishing. It trades about -0.4 of its total potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.23 per unit of volatility. If you would invest 1,618 in Xinhua Winshare Publishing on October 29, 2024 and sell it today you would lose (109.00) from holding Xinhua Winshare Publishing or give up 6.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Xinhua Winshare Publ |
Anhui Huaheng and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Xinhua Winshare
The main advantage of trading using opposite Anhui Huaheng and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| Anhui Huaheng vs. China Petroleum Chemical | Anhui Huaheng vs. PetroChina Co Ltd | Anhui Huaheng vs. China State Construction | Anhui Huaheng vs. China Railway Group |
| Xinhua Winshare vs. Anhui Huaheng Biotechnology | Xinhua Winshare vs. Postal Savings Bank | Xinhua Winshare vs. Xiandai Investment Co | Xinhua Winshare vs. Liaoning Chengda Biotechnology |
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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