Correlation Between Anhui Jinhe and Guangzhou Jinyi
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Anhui Jinhe and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Guangzhou Jinyi.
Diversification Opportunities for Anhui Jinhe and Guangzhou Jinyi
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Guangzhou Jinyi
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.9 times more return on investment than Guangzhou Jinyi. However, Anhui Jinhe Industrial is 1.11 times less risky than Guangzhou Jinyi. It trades about 0.07 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.0 per unit of risk. If you would invest 1,913 in Anhui Jinhe Industrial on September 3, 2024 and sell it today you would earn a total of 553.00 from holding Anhui Jinhe Industrial or generate 28.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Guangzhou Jinyi Media |
Anhui Jinhe and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Guangzhou Jinyi
The main advantage of trading using opposite Anhui Jinhe and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical Co | Anhui Jinhe vs. Hoshine Silicon Ind |
| Guangzhou Jinyi vs. Gansu Jiu Steel | Guangzhou Jinyi vs. Ming Yang Smart | Guangzhou Jinyi vs. Aba Chemicals Corp | Guangzhou Jinyi vs. Loctek Ergonomic Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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