Correlation Between Anhui Jinhe and Shenzhen Topway
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Shenzhen Topway Video, you can compare the effects of market volatilities on Anhui Jinhe and Shenzhen Topway 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 Jinhe with a short position of Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Shenzhen Topway.
Diversification Opportunities for Anhui Jinhe and Shenzhen Topway
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Shenzhen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video and Anhui Jinhe 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 Jinhe Industrial are associated (or correlated) with Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Shenzhen Topway
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.66 times more return on investment than Shenzhen Topway. However, Anhui Jinhe Industrial is 1.52 times less risky than Shenzhen Topway. It trades about 0.22 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.03 per unit of risk. If you would invest 2,255 in Anhui Jinhe Industrial on November 3, 2024 and sell it today you would earn a total of 160.00 from holding Anhui Jinhe Industrial or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Shenzhen Topway Video
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Shenzhen Topway Video |
Anhui Jinhe and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Shenzhen Topway
The main advantage of trading using opposite Anhui Jinhe and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Anhui Jinhe vs. Guangxi Wuzhou Communications | Anhui Jinhe vs. China Mobile Limited | Anhui Jinhe vs. Tongyu Communication | Anhui Jinhe vs. Xizi Clean Energy |
| Shenzhen Topway vs. Guangzhou Tinci Materials | Shenzhen Topway vs. Heilongjiang Transport Development | Shenzhen Topway vs. Sanxiang Advanced Materials | Shenzhen Topway vs. Hainan Haiqi Transportation |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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