Correlation Between Jiangsu GDK and Anhui Huaheng
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By analyzing existing cross correlation between Jiangsu GDK Biotechnology and Anhui Huaheng Biotechnology, you can compare the effects of market volatilities on Jiangsu GDK and Anhui Huaheng 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 Jiangsu GDK with a short position of Anhui Huaheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu GDK and Anhui Huaheng.
Diversification Opportunities for Jiangsu GDK and Anhui Huaheng
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Anhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu GDK Biotechnology and Anhui Huaheng Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaheng Biotec and Jiangsu GDK 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 Jiangsu GDK Biotechnology are associated (or correlated) with Anhui Huaheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaheng Biotec has no effect on the direction of Jiangsu GDK i.e., Jiangsu GDK and Anhui Huaheng go up and down completely randomly.
Pair Corralation between Jiangsu GDK and Anhui Huaheng
Assuming the 90 days trading horizon Jiangsu GDK Biotechnology is expected to under-perform the Anhui Huaheng. In addition to that, Jiangsu GDK is 1.25 times more volatile than Anhui Huaheng Biotechnology. It trades about -0.47 of its total potential returns per unit of risk. Anhui Huaheng Biotechnology is currently generating about -0.59 per unit of volatility. If you would invest 3,601 in Anhui Huaheng Biotechnology on October 11, 2024 and sell it today you would lose (886.00) from holding Anhui Huaheng Biotechnology or give up 24.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu GDK Biotechnology vs. Anhui Huaheng Biotechnology
Performance |
| Timeline |
| Jiangsu GDK Biotechnology |
| Anhui Huaheng Biotec |
Jiangsu GDK and Anhui Huaheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu GDK and Anhui Huaheng
The main advantage of trading using opposite Jiangsu GDK and Anhui Huaheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu GDK position performs unexpectedly, Anhui Huaheng 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 Anhui Huaheng will offset losses from the drop in Anhui Huaheng's long position.| Jiangsu GDK vs. Southern PublishingMedia Co | Jiangsu GDK vs. Guangdong Xiongsu Technology | Jiangsu GDK vs. Smartgiant Technology Co | Jiangsu GDK vs. Tianshui Huatian Technology |
| Anhui Huaheng vs. Dareway Software Co | Anhui Huaheng vs. Jiangsu GDK Biotechnology | Anhui Huaheng vs. Guangdong Marubi Biotechnology | Anhui Huaheng vs. Glodon Software Co |
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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