Correlation Between Andon Health and Changchun Engley
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By analyzing existing cross correlation between Andon Health Co and Changchun Engley Automobile, you can compare the effects of market volatilities on Andon Health and Changchun Engley 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 Andon Health with a short position of Changchun Engley. Check out your portfolio center. Please also check ongoing floating volatility patterns of Andon Health and Changchun Engley.
Diversification Opportunities for Andon Health and Changchun Engley
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Andon and Changchun is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Andon Health Co and Changchun Engley Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Engley Aut and Andon Health 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 Andon Health Co are associated (or correlated) with Changchun Engley. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Engley Aut has no effect on the direction of Andon Health i.e., Andon Health and Changchun Engley go up and down completely randomly.
Pair Corralation between Andon Health and Changchun Engley
Assuming the 90 days trading horizon Andon Health is expected to generate 12.49 times less return on investment than Changchun Engley. But when comparing it to its historical volatility, Andon Health Co is 1.34 times less risky than Changchun Engley. It trades about 0.01 of its potential returns per unit of risk. Changchun Engley Automobile is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 317.00 in Changchun Engley Automobile on October 18, 2024 and sell it today you would earn a total of 40.00 from holding Changchun Engley Automobile or generate 12.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Andon Health Co vs. Changchun Engley Automobile
Performance |
| Timeline |
| Andon Health |
| Changchun Engley Aut |
Andon Health and Changchun Engley Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Andon Health and Changchun Engley
The main advantage of trading using opposite Andon Health and Changchun Engley positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Andon Health position performs unexpectedly, Changchun Engley 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 Changchun Engley will offset losses from the drop in Changchun Engley's long position.| Andon Health vs. Shandong Iron and | Andon Health vs. Fangda Special Steel | Andon Health vs. Sportsoul Co Ltd | Andon Health vs. Sichuan Fulin Transportation |
| Changchun Engley vs. Hainan Mining Co | Changchun Engley vs. Andon Health Co | Changchun Engley vs. Guocheng Mining Co | Changchun Engley vs. Tianjin Silvery Dragon |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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