Correlation Between Zhongshan Broad-Ocean and Anhui Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhongshan Broad Ocean Motor and Anhui Transport Consulting, you can compare the effects of market volatilities on Zhongshan Broad-Ocean 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 Zhongshan Broad-Ocean with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Broad-Ocean and Anhui Transport.
Diversification Opportunities for Zhongshan Broad-Ocean and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhongshan and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Broad Ocean Motor 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 Zhongshan Broad-Ocean 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 Zhongshan Broad Ocean Motor 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 Zhongshan Broad-Ocean i.e., Zhongshan Broad-Ocean and Anhui Transport go up and down completely randomly.
Pair Corralation between Zhongshan Broad-Ocean and Anhui Transport
Assuming the 90 days trading horizon Zhongshan Broad Ocean Motor is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, Zhongshan Broad Ocean Motor is 1.5 times less risky than Anhui Transport. The stock trades about -0.11 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 898.00 in Anhui Transport Consulting on September 2, 2024 and sell it today you would earn a total of 85.00 from holding Anhui Transport Consulting or generate 9.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Broad Ocean Motor vs. Anhui Transport Consulting
Performance |
| Timeline |
| Zhongshan Broad Ocean |
| Anhui Transport Cons |
Zhongshan Broad-Ocean and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Broad-Ocean and Anhui Transport
The main advantage of trading using opposite Zhongshan Broad-Ocean and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Broad-Ocean 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.| Zhongshan Broad-Ocean vs. Bosera ChiNext ETF | Zhongshan Broad-Ocean vs. Gansu Jiu Steel | Zhongshan Broad-Ocean vs. Shenzhen MTC Co | Zhongshan Broad-Ocean vs. Ming Yang Smart |
| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |