Correlation Between Anhui Huaheng and Xiangyu Medical
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Xiangyu Medical Co, you can compare the effects of market volatilities on Anhui Huaheng and Xiangyu Medical 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Xiangyu Medical.
Diversification Opportunities for Anhui Huaheng and Xiangyu Medical
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Xiangyu is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Xiangyu Medical
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Xiangyu Medical. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.01 times less risky than Xiangyu Medical. The stock trades about -0.36 of its potential returns per unit of risk. The Xiangyu Medical Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,848 in Xiangyu Medical Co on November 2, 2024 and sell it today you would earn a total of 109.00 from holding Xiangyu Medical Co or generate 3.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Xiangyu Medical Co
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Xiangyu Medical |
Anhui Huaheng and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Xiangyu Medical
The main advantage of trading using opposite Anhui Huaheng and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Xiangyu Medical 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical's long position.| Anhui Huaheng vs. Fujian Nanwang Environment | Anhui Huaheng vs. Zhangjiagang Elegant Home | Anhui Huaheng vs. City Development Environment | Anhui Huaheng vs. Shandong Homey Aquatic |
| Xiangyu Medical vs. Postal Savings Bank | Xiangyu Medical vs. Hunan Investment Group | Xiangyu Medical vs. Zoje Resources Investment | Xiangyu Medical vs. Henan Shuanghui Investment |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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