Correlation Between Anhui Huaheng and ProQR Therapeutics

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Can any of the company-specific risk be diversified away by investing in both Anhui Huaheng and ProQR Therapeutics 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 Huaheng and ProQR Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Huaheng Biotechnology and ProQR Therapeutics BV, you can compare the effects of market volatilities on Anhui Huaheng and ProQR Therapeutics 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 ProQR Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and ProQR Therapeutics.

Diversification Opportunities for Anhui Huaheng and ProQR Therapeutics

-0.59
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Anhui and ProQR is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology and ProQR Therapeutics BV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProQR Therapeutics 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 ProQR Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProQR Therapeutics has no effect on the direction of Anhui Huaheng i.e., Anhui Huaheng and ProQR Therapeutics go up and down completely randomly.

Pair Corralation between Anhui Huaheng and ProQR Therapeutics

Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to generate 0.57 times more return on investment than ProQR Therapeutics. However, Anhui Huaheng Biotechnology is 1.75 times less risky than ProQR Therapeutics. It trades about 0.06 of its potential returns per unit of risk. ProQR Therapeutics BV is currently generating about 0.03 per unit of risk. If you would invest  3,604  in Anhui Huaheng Biotechnology on August 18, 2025 and sell it today you would earn a total of  281.00  from holding Anhui Huaheng Biotechnology or generate 7.8% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy92.31%
ValuesDaily Returns

Anhui Huaheng Biotechnology  vs.  ProQR Therapeutics BV

 Performance 
       Timeline  
Anhui Huaheng Biotec 

Risk-Adjusted Performance

Mild

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Anhui Huaheng Biotechnology are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Anhui Huaheng may actually be approaching a critical reversion point that can send shares even higher in December 2025.
ProQR Therapeutics 

Risk-Adjusted Performance

Weak

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ProQR Therapeutics BV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, ProQR Therapeutics may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Anhui Huaheng and ProQR Therapeutics Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Anhui Huaheng and ProQR Therapeutics

The main advantage of trading using opposite Anhui Huaheng and ProQR Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng position performs unexpectedly, ProQR Therapeutics 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 ProQR Therapeutics will offset losses from the drop in ProQR Therapeutics' long position.
The idea behind Anhui Huaheng Biotechnology and ProQR Therapeutics BV 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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