Correlation Between Financial Street and Anhui Tongguan
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By analyzing existing cross correlation between Financial Street Holdings and Anhui Tongguan Copper, you can compare the effects of market volatilities on Financial Street and Anhui Tongguan 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 Financial Street with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Financial Street and Anhui Tongguan.
Diversification Opportunities for Financial Street and Anhui Tongguan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Financial and Anhui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Financial Street Holdings and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper and Financial Street 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 Financial Street Holdings are associated (or correlated) with Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Financial Street i.e., Financial Street and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Financial Street and Anhui Tongguan
Assuming the 90 days trading horizon Financial Street Holdings is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Financial Street Holdings is 1.29 times less risky than Anhui Tongguan. The stock trades about -0.1 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Anhui Tongguan Copper on November 6, 2024 and sell it today you would earn a total of 46.00 from holding Anhui Tongguan Copper or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Financial Street Holdings vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Financial Street Holdings |
| Anhui Tongguan Copper |
Financial Street and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Financial Street and Anhui Tongguan
The main advantage of trading using opposite Financial Street and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Financial Street position performs unexpectedly, Anhui Tongguan 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 Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Financial Street vs. Bsm Chemical Co | Financial Street vs. Hengyi Petrochemical Co | Financial Street vs. Lier Chemical Co | Financial Street vs. China Asset Management |
| Anhui Tongguan vs. Queclink Wireless Solutions | Anhui Tongguan vs. Keeson Technology Corp | Anhui Tongguan vs. Soyea Technology Co | Anhui Tongguan vs. UCloud Technology Co |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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