Correlation Between Anhui Shiny and Zhengzhou Qianweiyangchu
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By analyzing existing cross correlation between Anhui Shiny Electronic and Zhengzhou Qianweiyangchu Food, you can compare the effects of market volatilities on Anhui Shiny and Zhengzhou Qianweiyangchu 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 Anhui Shiny with a short position of Zhengzhou Qianweiyangchu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shiny and Zhengzhou Qianweiyangchu.
Diversification Opportunities for Anhui Shiny and Zhengzhou Qianweiyangchu
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Anhui and Zhengzhou is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shiny Electronic and Zhengzhou Qianweiyangchu Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengzhou Qianweiyangchu and Anhui Shiny 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 Anhui Shiny Electronic are associated (or correlated) with Zhengzhou Qianweiyangchu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengzhou Qianweiyangchu has no effect on the direction of Anhui Shiny i.e., Anhui Shiny and Zhengzhou Qianweiyangchu go up and down completely randomly.
Pair Corralation between Anhui Shiny and Zhengzhou Qianweiyangchu
Assuming the 90 days trading horizon Anhui Shiny Electronic is expected to generate 1.34 times more return on investment than Zhengzhou Qianweiyangchu. However, Anhui Shiny is 1.34 times more volatile than Zhengzhou Qianweiyangchu Food. It trades about 0.09 of its potential returns per unit of risk. Zhengzhou Qianweiyangchu Food is currently generating about -0.21 per unit of risk. If you would invest 1,848 in Anhui Shiny Electronic on October 30, 2024 and sell it today you would earn a total of 236.00 from holding Anhui Shiny Electronic or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 97.62% |
| Values | Daily Returns |
Anhui Shiny Electronic vs. Zhengzhou Qianweiyangchu Food
Performance |
| Timeline |
| Anhui Shiny Electronic |
| Zhengzhou Qianweiyangchu |
Anhui Shiny and Zhengzhou Qianweiyangchu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Shiny and Zhengzhou Qianweiyangchu
The main advantage of trading using opposite Anhui Shiny and Zhengzhou Qianweiyangchu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shiny position performs unexpectedly, Zhengzhou Qianweiyangchu 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 Zhengzhou Qianweiyangchu will offset losses from the drop in Zhengzhou Qianweiyangchu's long position.| Anhui Shiny vs. Lecron Energy Saving | Anhui Shiny vs. Panda Financial Holding | Anhui Shiny vs. Peoples Insurance of | Anhui Shiny vs. Everdisplay Optronics Shanghai |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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