Correlation Between Jiangsu Jinling and Anhui Jianghuai
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By analyzing existing cross correlation between Jiangsu Jinling Sports and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Jiangsu Jinling 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 Jiangsu Jinling with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Jinling and Anhui Jianghuai.
Diversification Opportunities for Jiangsu Jinling and Anhui Jianghuai
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Anhui is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Jinling Sports 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 Jiangsu Jinling 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 Jiangsu Jinling Sports 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 Jiangsu Jinling i.e., Jiangsu Jinling and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Jiangsu Jinling and Anhui Jianghuai
Assuming the 90 days trading horizon Jiangsu Jinling Sports is expected to generate 0.52 times more return on investment than Anhui Jianghuai. However, Jiangsu Jinling Sports is 1.94 times less risky than Anhui Jianghuai. It trades about 0.26 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about -0.13 per unit of risk. If you would invest 1,322 in Jiangsu Jinling Sports on September 1, 2024 and sell it today you would earn a total of 187.00 from holding Jiangsu Jinling Sports or generate 14.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Jinling Sports vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Jiangsu Jinling Sports |
| Anhui Jianghuai Auto |
Jiangsu Jinling and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Jinling and Anhui Jianghuai
The main advantage of trading using opposite Jiangsu Jinling and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Jinling 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.| Jiangsu Jinling vs. Nanjing Putian Telecommunications | Jiangsu Jinling vs. Shenzhen Hifuture Electric | Jiangsu Jinling vs. Tianjin Realty Development | Jiangsu Jinling vs. Shenyang Huitian Thermal |
| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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