Correlation Between Anhui Shiny and Guangdong Jingyi
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By analyzing existing cross correlation between Anhui Shiny Electronic and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Anhui Shiny and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shiny and Guangdong Jingyi.
Diversification Opportunities for Anhui Shiny and Guangdong Jingyi
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Guangdong is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shiny Electronic and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Anhui Shiny i.e., Anhui Shiny and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Anhui Shiny and Guangdong Jingyi
Assuming the 90 days trading horizon Anhui Shiny Electronic is expected to generate 1.72 times more return on investment than Guangdong Jingyi. However, Anhui Shiny is 1.72 times more volatile than Guangdong Jingyi Metal. It trades about 0.05 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.02 per unit of risk. If you would invest 1,278 in Anhui Shiny Electronic on October 16, 2024 and sell it today you would earn a total of 642.00 from holding Anhui Shiny Electronic or generate 50.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Shiny Electronic vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Anhui Shiny Electronic |
| Guangdong Jingyi Metal |
Anhui Shiny and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Shiny and Guangdong Jingyi
The main advantage of trading using opposite Anhui Shiny and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shiny position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Anhui Shiny vs. Industrial and Commercial | Anhui Shiny vs. China Construction Bank | Anhui Shiny vs. Agricultural Bank of | Anhui Shiny vs. Bank of China |
| Guangdong Jingyi vs. Epoxy Base Electronic | Guangdong Jingyi vs. Shenzhen Clou Electronics | Guangdong Jingyi vs. Anhui Shiny Electronic | Guangdong Jingyi vs. Huasi Agricultural Development |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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