Correlation Between Guangdong Qunxing and Anhui Transport
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangdong Qunxing Toys and Anhui Transport Consulting, you can compare the effects of market volatilities on Guangdong Qunxing 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 Qunxing with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Qunxing and Anhui Transport.
Diversification Opportunities for Guangdong Qunxing and Anhui Transport
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Anhui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Qunxing Toys 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 Qunxing 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 Qunxing Toys 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 Qunxing i.e., Guangdong Qunxing and Anhui Transport go up and down completely randomly.
Pair Corralation between Guangdong Qunxing and Anhui Transport
Assuming the 90 days trading horizon Guangdong Qunxing is expected to generate 1.47 times less return on investment than Anhui Transport. In addition to that, Guangdong Qunxing is 1.12 times more volatile than Anhui Transport Consulting. It trades about 0.02 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.03 per unit of volatility. If you would invest 785.00 in Anhui Transport Consulting on August 24, 2024 and sell it today you would earn a total of 156.00 from holding Anhui Transport Consulting or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Guangdong Qunxing Toys vs. Anhui Transport Consulting
Performance |
| Timeline |
| Guangdong Qunxing Toys |
| Anhui Transport Cons |
Guangdong Qunxing and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Qunxing and Anhui Transport
The main advantage of trading using opposite Guangdong Qunxing and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Qunxing 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 Qunxing vs. Kweichow Moutai Co | Guangdong Qunxing vs. Contemporary Amperex Technology | Guangdong Qunxing vs. G bits Network Technology | Guangdong Qunxing vs. Beijing Roborock Technology |
| Anhui Transport vs. Chengdu Kanghua Biological | Anhui Transport vs. Beijing Wantai Biological | Anhui Transport vs. Suzhou Novoprotein Scientific | Anhui Transport vs. Aluminum Corp of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Commodity Directory Find actively traded commodities issued by global exchanges |