Correlation Between North Huajin and Anhui Transport
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By analyzing existing cross correlation between North Huajin Chemical and Anhui Transport Consulting, you can compare the effects of market volatilities on North Huajin and Anhui Transport 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 North Huajin with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Huajin and Anhui Transport.
Diversification Opportunities for North Huajin and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between North and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding North Huajin Chemical and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and North Huajin 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 North Huajin Chemical are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of North Huajin i.e., North Huajin and Anhui Transport go up and down completely randomly.
Pair Corralation between North Huajin and Anhui Transport
Assuming the 90 days trading horizon North Huajin Chemical is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, North Huajin Chemical is 1.05 times less risky than Anhui Transport. The stock trades about -0.01 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 753.00 in Anhui Transport Consulting on September 5, 2024 and sell it today you would earn a total of 224.00 from holding Anhui Transport Consulting or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Huajin Chemical vs. Anhui Transport Consulting
Performance |
| Timeline |
| North Huajin Chemical |
| Anhui Transport Cons |
North Huajin and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Huajin and Anhui Transport
The main advantage of trading using opposite North Huajin and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Huajin position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| North Huajin vs. Zijin Mining Group | North Huajin vs. Wanhua Chemical Group | North Huajin vs. Baoshan Iron Steel | North Huajin vs. Shandong Gold Mining |
| Anhui Transport vs. Jilin Chemical Fibre | Anhui Transport vs. North Huajin Chemical | Anhui Transport vs. Shaanxi Beiyuan Chemical | Anhui Transport vs. Beijing Jiaman Dress |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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