Correlation Between Anhui Huaheng and Shenzhen Bioeasy
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on Anhui Huaheng and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Shenzhen Bioeasy.
Diversification Opportunities for Anhui Huaheng and Shenzhen Bioeasy
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Shenzhen is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Shenzhen Bioeasy
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to generate 0.7 times more return on investment than Shenzhen Bioeasy. However, Anhui Huaheng Biotechnology is 1.43 times less risky than Shenzhen Bioeasy. It trades about -0.4 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about -0.29 per unit of risk. If you would invest 3,577 in Anhui Huaheng Biotechnology on October 7, 2024 and sell it today you would lose (628.00) from holding Anhui Huaheng Biotechnology or give up 17.56% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Shenzhen Bioeasy Biotechnology
Performance |
Timeline |
Anhui Huaheng Biotec |
Shenzhen Bioeasy Bio |
Anhui Huaheng and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Huaheng and Shenzhen Bioeasy
The main advantage of trading using opposite Anhui Huaheng and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.Anhui Huaheng vs. Nanjing Putian Telecommunications | Anhui Huaheng vs. Tianjin Realty Development | Anhui Huaheng vs. Zhongtong Guomai Communication | Anhui Huaheng vs. Gansu Jiu Steel |
Shenzhen Bioeasy vs. Long Yuan Construction | Shenzhen Bioeasy vs. Huaxia Fund Management | Shenzhen Bioeasy vs. Jiugui Liquor Co | Shenzhen Bioeasy vs. Gifore Agricultural Machinery |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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