Correlation Between Shenzhen MYS and Anhui Jianghuai
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By analyzing existing cross correlation between Shenzhen MYS Environmental and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Shenzhen MYS 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 Shenzhen MYS with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen MYS and Anhui Jianghuai.
Diversification Opportunities for Shenzhen MYS and Anhui Jianghuai
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shenzhen and Anhui is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen MYS Environmental 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 Shenzhen MYS 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 Shenzhen MYS Environmental 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 Shenzhen MYS i.e., Shenzhen MYS and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Shenzhen MYS and Anhui Jianghuai
Assuming the 90 days trading horizon Shenzhen MYS Environmental is expected to under-perform the Anhui Jianghuai. In addition to that, Shenzhen MYS is 1.09 times more volatile than Anhui Jianghuai Automobile. It trades about -0.25 of its total potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.05 per unit of volatility. If you would invest 3,689 in Anhui Jianghuai Automobile on October 16, 2024 and sell it today you would earn a total of 81.00 from holding Anhui Jianghuai Automobile or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen MYS Environmental vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Shenzhen MYS Environ |
| Anhui Jianghuai Auto |
Shenzhen MYS and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen MYS and Anhui Jianghuai
The main advantage of trading using opposite Shenzhen MYS and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen MYS 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.| Shenzhen MYS vs. Metro Investment Development | Shenzhen MYS vs. Harbin Hatou Investment | Shenzhen MYS vs. Zoje Resources Investment | Shenzhen MYS vs. Nuode Investment Co |
| Anhui Jianghuai vs. Dynagreen Environmental Protection | Anhui Jianghuai vs. Shenzhen MYS Environmental | Anhui Jianghuai vs. Fangda Special Steel | Anhui Jianghuai vs. Gansu Jiu Steel |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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