Correlation Between Anhui Heli and GreenPower

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Can any of the company-specific risk be diversified away by investing in both Anhui Heli and GreenPower at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anhui Heli and GreenPower into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Heli Co and GreenPower Motor, you can compare the effects of market volatilities on Anhui Heli and GreenPower 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 Heli with a short position of GreenPower. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Heli and GreenPower.

Diversification Opportunities for Anhui Heli and GreenPower

0.51
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Anhui and GreenPower is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Heli Co and GreenPower Motor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenPower Motor and Anhui Heli 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 Heli Co are associated (or correlated) with GreenPower. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenPower Motor has no effect on the direction of Anhui Heli i.e., Anhui Heli and GreenPower go up and down completely randomly.

Pair Corralation between Anhui Heli and GreenPower

Assuming the 90 days trading horizon Anhui Heli Co is expected to generate 0.36 times more return on investment than GreenPower. However, Anhui Heli Co is 2.75 times less risky than GreenPower. It trades about -0.01 of its potential returns per unit of risk. GreenPower Motor is currently generating about -0.3 per unit of risk. If you would invest  2,156  in Anhui Heli Co on October 7, 2025 and sell it today you would lose (67.00) from holding Anhui Heli Co or give up 3.11% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy96.83%
ValuesDaily Returns

Anhui Heli Co  vs.  GreenPower Motor

 Performance 
       Timeline  
Anhui Heli 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Anhui Heli Co has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Anhui Heli is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
GreenPower Motor 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days GreenPower Motor has generated negative risk-adjusted returns adding no value to investors with long positions. Even with conflicting performance in the last few months, the Stock's basic indicators remain relatively invariable which may send shares a bit higher in February 2026. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Anhui Heli and GreenPower Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anhui Heli and GreenPower

The main advantage of trading using opposite Anhui Heli and GreenPower positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Heli position performs unexpectedly, GreenPower 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 GreenPower will offset losses from the drop in GreenPower's long position.
The idea behind Anhui Heli Co and GreenPower Motor pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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