Correlation Between Hubei Yingtong and Anhui Jianghuai
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Hubei Yingtong and Anhui Jianghuai 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 Hubei Yingtong with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Anhui Jianghuai.
Diversification Opportunities for Hubei Yingtong and Anhui Jianghuai
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hubei and Anhui is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Hubei Yingtong 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 Hubei Yingtong Telecommunication are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Anhui Jianghuai
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 2.49 times more return on investment than Anhui Jianghuai. However, Hubei Yingtong is 2.49 times more volatile than Anhui Jianghuai Automobile. It trades about 0.24 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.25 per unit of risk. If you would invest 1,268 in Hubei Yingtong Telecommunication on November 3, 2024 and sell it today you would earn a total of 393.00 from holding Hubei Yingtong Telecommunication or generate 30.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Anhui Jianghuai Auto |
Hubei Yingtong and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Anhui Jianghuai
The main advantage of trading using opposite Hubei Yingtong and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Hubei Yingtong vs. Easyhome New Retail | Hubei Yingtong vs. Guangdong Marubi Biotechnology | Hubei Yingtong vs. Namchow Food Group | Hubei Yingtong vs. Anhui Huaheng Biotechnology |
| Anhui Jianghuai vs. Kailong High Technology | Anhui Jianghuai vs. Bohai Leasing Co | Anhui Jianghuai vs. Keeson Technology Corp | Anhui Jianghuai vs. ROPEOK Technology Group |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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