Correlation Between King Strong and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between King Strong New Material and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Anhui Jianghuai.
Diversification Opportunities for King Strong and Anhui Jianghuai
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between King and Anhui is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between King Strong and Anhui Jianghuai
Assuming the 90 days trading horizon King Strong is expected to generate 5.94 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, King Strong New Material is 1.17 times less risky than Anhui Jianghuai. It trades about 0.01 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,681 in Anhui Jianghuai Automobile on October 26, 2024 and sell it today you would earn a total of 2,530 from holding Anhui Jianghuai Automobile or generate 150.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| King Strong New |
| Anhui Jianghuai Auto |
King Strong and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Anhui Jianghuai
The main advantage of trading using opposite King Strong and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Industrial and Commercial | King Strong vs. China Construction Bank | King Strong vs. Agricultural Bank of | King Strong vs. Bank of China |
| Anhui Jianghuai vs. Bank of Suzhou | Anhui Jianghuai vs. Shanghai Yanpu Metal | Anhui Jianghuai vs. Financial Street Holdings | Anhui Jianghuai vs. Guangdong Jingyi Metal |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |