Correlation Between Guangdong Shenglu and Anhui Jianghuai
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Guangdong Shenglu 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 Guangdong Shenglu with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and Anhui Jianghuai.
Diversification Opportunities for Guangdong Shenglu and Anhui Jianghuai
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anhui is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic 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 Guangdong Shenglu 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 Shenglu Telecommunication 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 Guangdong Shenglu i.e., Guangdong Shenglu and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and Anhui Jianghuai
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Guangdong Shenglu Telecommunication is 1.62 times less risky than Anhui Jianghuai. The stock trades about -0.01 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 3,455 in Anhui Jianghuai Automobile on August 29, 2024 and sell it today you would earn a total of 264.00 from holding Anhui Jianghuai Automobile or generate 7.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Guangdong Shenglu |
| Anhui Jianghuai Auto |
Guangdong Shenglu and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and Anhui Jianghuai
The main advantage of trading using opposite Guangdong Shenglu and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu 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.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| Anhui Jianghuai vs. Lutian Machinery Co | Anhui Jianghuai vs. China Longyuan Power | Anhui Jianghuai vs. Changshu Tongrun Auto | Anhui Jianghuai vs. PetroChina Co Ltd |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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