Correlation Between Anhui Jinhe and Caihong Display
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Caihong Display Devices, you can compare the effects of market volatilities on Anhui Jinhe and Caihong Display 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 Caihong Display. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Caihong Display.
Diversification Opportunities for Anhui Jinhe and Caihong Display
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Caihong is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Caihong Display Devices in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Caihong Display Devices 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 Caihong Display. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Caihong Display Devices has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Caihong Display go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Caihong Display
Assuming the 90 days trading horizon Anhui Jinhe is expected to generate 1.1 times less return on investment than Caihong Display. But when comparing it to its historical volatility, Anhui Jinhe Industrial is 1.91 times less risky than Caihong Display. It trades about 0.16 of its potential returns per unit of risk. Caihong Display Devices is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 850.00 in Caihong Display Devices on October 25, 2024 and sell it today you would earn a total of 45.00 from holding Caihong Display Devices or generate 5.29% 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. Caihong Display Devices
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Caihong Display Devices |
Anhui Jinhe and Caihong Display Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Caihong Display
The main advantage of trading using opposite Anhui Jinhe and Caihong Display positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Caihong Display 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 Caihong Display will offset losses from the drop in Caihong Display's long position.| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical Co |
| Caihong Display vs. Ningbo Homelink Eco iTech | Caihong Display vs. Ziel Home Furnishing | Caihong Display vs. Guangdong Marubi Biotechnology | Caihong Display vs. Vohringer Home 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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