Correlation Between Longmaster Information and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Longmaster Information Tech and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Longmaster Information 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 Longmaster Information with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Anhui Jianghuai.
Diversification Opportunities for Longmaster Information and Anhui Jianghuai
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longmaster and Anhui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech 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 Longmaster Information 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 Longmaster Information Tech 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 Longmaster Information i.e., Longmaster Information and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Longmaster Information and Anhui Jianghuai
Assuming the 90 days trading horizon Longmaster Information is expected to generate 3.37 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Longmaster Information Tech is 1.12 times less risky than Anhui Jianghuai. It trades about 0.05 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,592 in Anhui Jianghuai Automobile on September 3, 2024 and sell it today you would earn a total of 1,919 from holding Anhui Jianghuai Automobile or generate 120.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Longmaster Information |
| Anhui Jianghuai Auto |
Longmaster Information and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Anhui Jianghuai
The main advantage of trading using opposite Longmaster Information and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information 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.The idea behind Longmaster Information Tech and Anhui Jianghuai Automobile pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. China Mobile Limited | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Life Insurance |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |