Correlation Between Anhui Jinhe and Suzhou Industrial
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Suzhou Industrial Park, you can compare the effects of market volatilities on Anhui Jinhe and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Suzhou Industrial.
Diversification Opportunities for Anhui Jinhe and Suzhou Industrial
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Suzhou is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Suzhou Industrial
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 0.34 times more return on investment than Suzhou Industrial. However, Anhui Jinhe Industrial is 2.9 times less risky than Suzhou Industrial. It trades about 0.25 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.06 per unit of risk. If you would invest 2,240 in Anhui Jinhe Industrial on November 4, 2024 and sell it today you would earn a total of 175.00 from holding Anhui Jinhe Industrial or generate 7.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jinhe Industrial vs. Suzhou Industrial Park
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Suzhou Industrial Park |
Anhui Jinhe and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Suzhou Industrial
The main advantage of trading using opposite Anhui Jinhe and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial's long position.| Anhui Jinhe vs. Guilin Seamild Foods | Anhui Jinhe vs. Ligao Foods CoLtd | Anhui Jinhe vs. Gan Yuan Foods | Anhui Jinhe vs. Anhui Jianghuai Automobile |
| Suzhou Industrial vs. De Rucci Healthy | Suzhou Industrial vs. Hainan Mining Co | Suzhou Industrial vs. Youngy Health Co | Suzhou Industrial vs. Sanbo Hospital Management |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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