Correlation Between Aba Chemicals and Huayi Brothers
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By analyzing existing cross correlation between Aba Chemicals Corp and Huayi Brothers Media, you can compare the effects of market volatilities on Aba Chemicals and Huayi Brothers 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 Aba Chemicals with a short position of Huayi Brothers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and Huayi Brothers.
Diversification Opportunities for Aba Chemicals and Huayi Brothers
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and Huayi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and Huayi Brothers Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huayi Brothers Media and Aba Chemicals 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 Aba Chemicals Corp are associated (or correlated) with Huayi Brothers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huayi Brothers Media has no effect on the direction of Aba Chemicals i.e., Aba Chemicals and Huayi Brothers go up and down completely randomly.
Pair Corralation between Aba Chemicals and Huayi Brothers
Assuming the 90 days trading horizon Aba Chemicals is expected to generate 1.2 times less return on investment than Huayi Brothers. But when comparing it to its historical volatility, Aba Chemicals Corp is 1.03 times less risky than Huayi Brothers. It trades about 0.16 of its potential returns per unit of risk. Huayi Brothers Media is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 200.00 in Huayi Brothers Media on September 12, 2024 and sell it today you would earn a total of 141.00 from holding Huayi Brothers Media or generate 70.5% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aba Chemicals Corp vs. Huayi Brothers Media
Performance |
Timeline |
Aba Chemicals Corp |
Huayi Brothers Media |
Aba Chemicals and Huayi Brothers Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aba Chemicals and Huayi Brothers
The main advantage of trading using opposite Aba Chemicals and Huayi Brothers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals position performs unexpectedly, Huayi Brothers 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 Huayi Brothers will offset losses from the drop in Huayi Brothers' long position.Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology Co |
Huayi Brothers vs. Kweichow Moutai Co | Huayi Brothers vs. Shenzhen Mindray Bio Medical | Huayi Brothers vs. G bits Network Technology | Huayi Brothers vs. Beijing Roborock Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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