Correlation Between Anhui Shiny and Liaoning Dingjide
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Shiny Electronic and Liaoning Dingjide Petrochemical, you can compare the effects of market volatilities on Anhui Shiny and Liaoning Dingjide 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 Liaoning Dingjide. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shiny and Liaoning Dingjide.
Diversification Opportunities for Anhui Shiny and Liaoning Dingjide
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Liaoning is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shiny Electronic and Liaoning Dingjide Petrochemica in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Dingjide 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 Liaoning Dingjide. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Dingjide has no effect on the direction of Anhui Shiny i.e., Anhui Shiny and Liaoning Dingjide go up and down completely randomly.
Pair Corralation between Anhui Shiny and Liaoning Dingjide
Assuming the 90 days trading horizon Anhui Shiny Electronic is expected to generate 1.02 times more return on investment than Liaoning Dingjide. However, Anhui Shiny is 1.02 times more volatile than Liaoning Dingjide Petrochemical. It trades about 0.03 of its potential returns per unit of risk. Liaoning Dingjide Petrochemical is currently generating about -0.09 per unit of risk. If you would invest 2,166 in Anhui Shiny Electronic on October 28, 2024 and sell it today you would earn a total of 26.00 from holding Anhui Shiny Electronic or generate 1.2% 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. Liaoning Dingjide Petrochemica
Performance |
| Timeline |
| Anhui Shiny Electronic |
| Liaoning Dingjide |
Anhui Shiny and Liaoning Dingjide Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Shiny and Liaoning Dingjide
The main advantage of trading using opposite Anhui Shiny and Liaoning Dingjide positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shiny position performs unexpectedly, Liaoning Dingjide 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 Liaoning Dingjide will offset losses from the drop in Liaoning Dingjide's long position.| Anhui Shiny vs. Fujian Nanwang Environment | Anhui Shiny vs. Beijing Yanjing Brewery | Anhui Shiny vs. Tsingtao Brewery Co | Anhui Shiny vs. Tederic Machinery Co |
| Liaoning Dingjide vs. Ningbo Fangzheng Automobile | Liaoning Dingjide vs. Queclink Wireless Solutions | Liaoning Dingjide vs. Xiangyang Automobile Bearing | Liaoning Dingjide vs. Jilin Jlu Communication |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |