Correlation Between Rongan Property and Anhui Jianghuai
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By analyzing existing cross correlation between Rongan Property Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Rongan Property and Anhui Jianghuai 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 Rongan Property with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rongan Property and Anhui Jianghuai.
Diversification Opportunities for Rongan Property and Anhui Jianghuai
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Rongan and Anhui is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Rongan Property Co and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Rongan Property 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 Rongan Property Co are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Rongan Property i.e., Rongan Property and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Rongan Property and Anhui Jianghuai
Assuming the 90 days trading horizon Rongan Property Co is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Rongan Property Co is 1.04 times less risky than Anhui Jianghuai. The stock trades about -0.2 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,500 in Anhui Jianghuai Automobile on November 6, 2024 and sell it today you would earn a total of 589.00 from holding Anhui Jianghuai Automobile or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Rongan Property Co vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Rongan Property |
| Anhui Jianghuai Auto |
Rongan Property and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rongan Property and Anhui Jianghuai
The main advantage of trading using opposite Rongan Property and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rongan Property position performs unexpectedly, Anhui Jianghuai 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 Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Rongan Property vs. Industrial and Commercial | Rongan Property vs. Agricultural Bank of | Rongan Property vs. China Construction Bank | Rongan Property vs. Bank of China |
| Anhui Jianghuai vs. Air China Ltd | Anhui Jianghuai vs. Sino Platinum Metals Co | Anhui Jianghuai vs. Western Metal Materials | Anhui Jianghuai vs. Kontour Medical 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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