Correlation Between Anhui Shiny and Chahua Modern
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By analyzing existing cross correlation between Anhui Shiny Electronic and Chahua Modern Housewares, you can compare the effects of market volatilities on Anhui Shiny and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Shiny and Chahua Modern.
Diversification Opportunities for Anhui Shiny and Chahua Modern
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Chahua is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Shiny Electronic and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Anhui Shiny i.e., Anhui Shiny and Chahua Modern go up and down completely randomly.
Pair Corralation between Anhui Shiny and Chahua Modern
Assuming the 90 days trading horizon Anhui Shiny Electronic is expected to generate 1.47 times more return on investment than Chahua Modern. However, Anhui Shiny is 1.47 times more volatile than Chahua Modern Housewares. It trades about 0.06 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.07 per unit of risk. If you would invest 1,414 in Anhui Shiny Electronic on December 12, 2024 and sell it today you would earn a total of 1,027 from holding Anhui Shiny Electronic or generate 72.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Shiny Electronic vs. Chahua Modern Housewares
Performance |
| Timeline |
| Anhui Shiny Electronic |
| Chahua Modern Housewares |
Anhui Shiny and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Shiny and Chahua Modern
The main advantage of trading using opposite Anhui Shiny and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Shiny position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Anhui Shiny vs. Advanced Technology Materials | ||
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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