Correlation Between Anhui Jinhe and Chengdu B
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By analyzing existing cross correlation between Anhui Jinhe Industrial and Chengdu B ray Media, you can compare the effects of market volatilities on Anhui Jinhe and Chengdu B 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 Chengdu B. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jinhe and Chengdu B.
Diversification Opportunities for Anhui Jinhe and Chengdu B
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Chengdu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jinhe Industrial and Chengdu B ray Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu B ray 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 Chengdu B. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu B ray has no effect on the direction of Anhui Jinhe i.e., Anhui Jinhe and Chengdu B go up and down completely randomly.
Pair Corralation between Anhui Jinhe and Chengdu B
Assuming the 90 days trading horizon Anhui Jinhe Industrial is expected to generate 1.02 times more return on investment than Chengdu B. However, Anhui Jinhe is 1.02 times more volatile than Chengdu B ray Media. It trades about 0.07 of its potential returns per unit of risk. Chengdu B ray Media is currently generating about 0.04 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. Chengdu B ray Media
Performance |
| Timeline |
| Anhui Jinhe Industrial |
| Chengdu B ray |
Anhui Jinhe and Chengdu B Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jinhe and Chengdu B
The main advantage of trading using opposite Anhui Jinhe and Chengdu B positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jinhe position performs unexpectedly, Chengdu B 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 Chengdu B will offset losses from the drop in Chengdu B'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 |
| Chengdu B vs. Gansu Jiu Steel | Chengdu B vs. Ming Yang Smart | Chengdu B vs. Aba Chemicals Corp | Chengdu B 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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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