Correlation Between China Merchants and Anshan Senyuan
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By analyzing existing cross correlation between China Merchants Shekou and Anshan Senyuan Road, you can compare the effects of market volatilities on China Merchants and Anshan Senyuan 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 China Merchants with a short position of Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and Anshan Senyuan.
Diversification Opportunities for China Merchants and Anshan Senyuan
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Anshan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road and China Merchants 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 China Merchants Shekou are associated (or correlated) with Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of China Merchants i.e., China Merchants and Anshan Senyuan go up and down completely randomly.
Pair Corralation between China Merchants and Anshan Senyuan
Assuming the 90 days trading horizon China Merchants Shekou is expected to generate 0.42 times more return on investment than Anshan Senyuan. However, China Merchants Shekou is 2.41 times less risky than Anshan Senyuan. It trades about -0.4 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.32 per unit of risk. If you would invest 1,122 in China Merchants Shekou on October 11, 2024 and sell it today you would lose (128.00) from holding China Merchants Shekou or give up 11.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. Anshan Senyuan Road
Performance |
| Timeline |
| China Merchants Shekou |
| Anshan Senyuan Road |
China Merchants and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and Anshan Senyuan
The main advantage of trading using opposite China Merchants and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| China Merchants vs. China Publishing Media | China Merchants vs. Changjiang Publishing Media | China Merchants vs. Thinkingdom Media Group | China Merchants vs. COL Digital Publishing |
| Anshan Senyuan vs. Beijing Mainstreets Investment | Anshan Senyuan vs. Ye Chiu Metal | Anshan Senyuan vs. Rising Nonferrous Metals | Anshan Senyuan vs. Guangdong Jingyi Metal |
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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