Correlation Between Anhui Huaheng and Zhejiang Yongjin
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on Anhui Huaheng and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Zhejiang Yongjin.
Diversification Opportunities for Anhui Huaheng and Zhejiang Yongjin
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Zhejiang Yongjin
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Zhejiang Yongjin. In addition to that, Anhui Huaheng is 1.06 times more volatile than Zhejiang Yongjin Metal. It trades about -0.76 of its total potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.21 per unit of volatility. If you would invest 1,946 in Zhejiang Yongjin Metal on October 12, 2024 and sell it today you would lose (158.00) from holding Zhejiang Yongjin Metal or give up 8.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Zhejiang Yongjin Metal |
Anhui Huaheng and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Zhejiang Yongjin
The main advantage of trading using opposite Anhui Huaheng and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| Anhui Huaheng vs. Dareway Software Co | Anhui Huaheng vs. Jiangsu GDK Biotechnology | Anhui Huaheng vs. Guangdong Marubi Biotechnology | Anhui Huaheng vs. Glodon Software Co |
| Zhejiang Yongjin vs. Ziel Home Furnishing | Zhejiang Yongjin vs. Anhui Huaheng Biotechnology | Zhejiang Yongjin vs. Yili Chuanning Biotechnology | Zhejiang Yongjin vs. DO Home Collection |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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