Correlation Between Shanghai Metersbonwe and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Metersbonwe FashionAccessories and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Shanghai Metersbonwe 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 Shanghai Metersbonwe with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Metersbonwe and Anhui Jianghuai.
Diversification Opportunities for Shanghai Metersbonwe and Anhui Jianghuai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and Anhui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Metersbonwe FashionAc 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 Shanghai Metersbonwe 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 Shanghai Metersbonwe FashionAccessories 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 Shanghai Metersbonwe i.e., Shanghai Metersbonwe and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Shanghai Metersbonwe and Anhui Jianghuai
Assuming the 90 days trading horizon Shanghai Metersbonwe FashionAccessories is expected to generate 0.84 times more return on investment than Anhui Jianghuai. However, Shanghai Metersbonwe FashionAccessories is 1.19 times less risky than Anhui Jianghuai. It trades about 0.11 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about -0.13 per unit of risk. If you would invest 187.00 in Shanghai Metersbonwe FashionAccessories on September 1, 2024 and sell it today you would earn a total of 15.00 from holding Shanghai Metersbonwe FashionAccessories or generate 8.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Metersbonwe FashionAc vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Shanghai Metersbonwe |
| Anhui Jianghuai Auto |
Shanghai Metersbonwe and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Metersbonwe and Anhui Jianghuai
The main advantage of trading using opposite Shanghai Metersbonwe and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Metersbonwe 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.| Shanghai Metersbonwe vs. Cultural Investment Holdings | Shanghai Metersbonwe vs. Gome Telecom Equipment | Shanghai Metersbonwe vs. Bus Online Co | Shanghai Metersbonwe vs. Holitech Technology Co |
| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
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.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |