Correlation Between YLZ Information and Anhui Huaren
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By analyzing existing cross correlation between YLZ Information Tech and Anhui Huaren Health, you can compare the effects of market volatilities on YLZ Information and Anhui Huaren 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 YLZ Information with a short position of Anhui Huaren. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and Anhui Huaren.
Diversification Opportunities for YLZ Information and Anhui Huaren
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and Anhui is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech and Anhui Huaren Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Huaren Health and YLZ Information 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 YLZ Information Tech are associated (or correlated) with Anhui Huaren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Huaren Health has no effect on the direction of YLZ Information i.e., YLZ Information and Anhui Huaren go up and down completely randomly.
Pair Corralation between YLZ Information and Anhui Huaren
Assuming the 90 days trading horizon YLZ Information Tech is expected to generate 1.26 times more return on investment than Anhui Huaren. However, YLZ Information is 1.26 times more volatile than Anhui Huaren Health. It trades about -0.01 of its potential returns per unit of risk. Anhui Huaren Health is currently generating about -0.04 per unit of risk. If you would invest 600.00 in YLZ Information Tech on September 20, 2024 and sell it today you would lose (234.00) from holding YLZ Information Tech or give up 39.0% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 92.23% |
Values | Daily Returns |
YLZ Information Tech vs. Anhui Huaren Health
Performance |
Timeline |
YLZ Information Tech |
Anhui Huaren Health |
YLZ Information and Anhui Huaren Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with YLZ Information and Anhui Huaren
The main advantage of trading using opposite YLZ Information and Anhui Huaren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information position performs unexpectedly, Anhui Huaren 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 Huaren will offset losses from the drop in Anhui Huaren's long position.YLZ Information vs. Ming Yang Smart | YLZ Information vs. 159681 | YLZ Information vs. 159005 | YLZ Information vs. Loctek Ergonomic Technology |
Anhui Huaren vs. Dawning Information Industry | Anhui Huaren vs. YLZ Information Tech | Anhui Huaren vs. Guangzhou Ruoyuchen Information | Anhui Huaren vs. Northern United Publishing |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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