Correlation Between Anhui Huilong and Jiangsu Broadcasting
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By analyzing existing cross correlation between Anhui Huilong Agricultural and Jiangsu Broadcasting Cable, you can compare the effects of market volatilities on Anhui Huilong and Jiangsu Broadcasting 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 Anhui Huilong with a short position of Jiangsu Broadcasting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Jiangsu Broadcasting.
Diversification Opportunities for Anhui Huilong and Jiangsu Broadcasting
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Jiangsu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Jiangsu Broadcasting Cable in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Broadcasting and Anhui Huilong 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 Anhui Huilong Agricultural are associated (or correlated) with Jiangsu Broadcasting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Broadcasting has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Jiangsu Broadcasting go up and down completely randomly.
Pair Corralation between Anhui Huilong and Jiangsu Broadcasting
Assuming the 90 days trading horizon Anhui Huilong Agricultural is expected to under-perform the Jiangsu Broadcasting. In addition to that, Anhui Huilong is 1.24 times more volatile than Jiangsu Broadcasting Cable. It trades about -0.02 of its total potential returns per unit of risk. Jiangsu Broadcasting Cable is currently generating about 0.01 per unit of volatility. If you would invest 332.00 in Jiangsu Broadcasting Cable on October 29, 2024 and sell it today you would lose (8.00) from holding Jiangsu Broadcasting Cable or give up 2.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Jiangsu Broadcasting Cable
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Jiangsu Broadcasting |
Anhui Huilong and Jiangsu Broadcasting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Jiangsu Broadcasting
The main advantage of trading using opposite Anhui Huilong and Jiangsu Broadcasting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Jiangsu Broadcasting 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 Jiangsu Broadcasting will offset losses from the drop in Jiangsu Broadcasting's long position.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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