Correlation Between Zhonghang Electronic and Anhui Transport
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By analyzing existing cross correlation between Zhonghang Electronic Measuring and Anhui Transport Consulting, you can compare the effects of market volatilities on Zhonghang Electronic and Anhui Transport 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 Zhonghang Electronic with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghang Electronic and Anhui Transport.
Diversification Opportunities for Zhonghang Electronic and Anhui Transport
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhonghang and Anhui is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghang Electronic Measuring and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and Zhonghang Electronic 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 Zhonghang Electronic Measuring are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Zhonghang Electronic i.e., Zhonghang Electronic and Anhui Transport go up and down completely randomly.
Pair Corralation between Zhonghang Electronic and Anhui Transport
Assuming the 90 days trading horizon Zhonghang Electronic Measuring is expected to generate 1.55 times more return on investment than Anhui Transport. However, Zhonghang Electronic is 1.55 times more volatile than Anhui Transport Consulting. It trades about 0.09 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.01 per unit of risk. If you would invest 4,049 in Zhonghang Electronic Measuring on October 12, 2024 and sell it today you would earn a total of 2,757 from holding Zhonghang Electronic Measuring or generate 68.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghang Electronic Measuring vs. Anhui Transport Consulting
Performance |
| Timeline |
| Zhonghang Electronic |
| Anhui Transport Cons |
Zhonghang Electronic and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghang Electronic and Anhui Transport
The main advantage of trading using opposite Zhonghang Electronic and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghang Electronic position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| Zhonghang Electronic vs. Jiaozuo Wanfang Aluminum | Zhonghang Electronic vs. Zijin Mining Group | Zhonghang Electronic vs. Jiangsu Yanghe Brewery | Zhonghang Electronic vs. Chongqing Shunbo Aluminum |
| Anhui Transport vs. Allwin Telecommunication Co | Anhui Transport vs. Nanjing Putian Telecommunications | Anhui Transport vs. Shandong Polymer Biochemicals | Anhui Transport vs. Jinsanjiang Silicon Material |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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