Correlation Between Guangdong Jingyi and Anhui Transport
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Anhui Transport Consulting, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Anhui Transport.
Diversification Opportunities for Guangdong Jingyi and Anhui Transport
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anhui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal 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 Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Anhui Transport go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Anhui Transport
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.11 times more return on investment than Anhui Transport. However, Guangdong Jingyi is 1.11 times more volatile than Anhui Transport Consulting. It trades about 0.2 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.1 per unit of risk. If you would invest 660.00 in Guangdong Jingyi Metal on September 1, 2024 and sell it today you would earn a total of 76.00 from holding Guangdong Jingyi Metal or generate 11.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Anhui Transport Consulting
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Anhui Transport Cons |
Guangdong Jingyi and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Anhui Transport
The main advantage of trading using opposite Guangdong Jingyi and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Shandong Gold Mining |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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