Correlation Between Xinjiang Zhongtai and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Xinjiang Zhongtai Chemical and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Xinjiang Zhongtai 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 Xinjiang Zhongtai with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Zhongtai and Anhui Jianghuai.
Diversification Opportunities for Xinjiang Zhongtai and Anhui Jianghuai
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinjiang and Anhui is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Zhongtai Chemical 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 Xinjiang Zhongtai 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 Xinjiang Zhongtai Chemical 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 Xinjiang Zhongtai i.e., Xinjiang Zhongtai and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Xinjiang Zhongtai and Anhui Jianghuai
Assuming the 90 days trading horizon Xinjiang Zhongtai is expected to generate 1.79 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Xinjiang Zhongtai Chemical is 2.15 times less risky than Anhui Jianghuai. It trades about 0.26 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,225 in Anhui Jianghuai Automobile on September 12, 2024 and sell it today you would earn a total of 1,428 from holding Anhui Jianghuai Automobile or generate 64.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Xinjiang Zhongtai Chemical vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Xinjiang Zhongtai |
| Anhui Jianghuai Auto |
Xinjiang Zhongtai and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Zhongtai and Anhui Jianghuai
The main advantage of trading using opposite Xinjiang Zhongtai and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Zhongtai 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.| Xinjiang Zhongtai vs. Sunny Loan Top | Xinjiang Zhongtai vs. Ye Chiu Metal | Xinjiang Zhongtai vs. Xinjiang Baodi Mining | Xinjiang Zhongtai vs. Zhejiang Kingland Pipeline |
| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |