Correlation Between Anhui Tongguan and City Development
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By analyzing existing cross correlation between Anhui Tongguan Copper and City Development Environment, you can compare the effects of market volatilities on Anhui Tongguan and City Development 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 Tongguan with a short position of City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and City Development.
Diversification Opportunities for Anhui Tongguan and City Development
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and City is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env and Anhui Tongguan 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 Tongguan Copper are associated (or correlated) with City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and City Development go up and down completely randomly.
Pair Corralation between Anhui Tongguan and City Development
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the City Development. In addition to that, Anhui Tongguan is 1.4 times more volatile than City Development Environment. It trades about -0.01 of its total potential returns per unit of risk. City Development Environment is currently generating about 0.03 per unit of volatility. If you would invest 1,041 in City Development Environment on November 5, 2024 and sell it today you would earn a total of 242.00 from holding City Development Environment or generate 23.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. City Development Environment
Performance |
| Timeline |
| Anhui Tongguan Copper |
| City Development Env |
Anhui Tongguan and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and City Development
The main advantage of trading using opposite Anhui Tongguan and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development's long position.| Anhui Tongguan vs. Allmed Medical Products | Anhui Tongguan vs. Kontour Medical Technology | Anhui Tongguan vs. Ningbo Tip Rubber | Anhui Tongguan vs. CareRay Digital Medical |
| City Development vs. Shengyuan Environmental Protection | City Development vs. Mingchen Health Co | City Development vs. Sanbo Hospital Management | City Development vs. Healthcare Co |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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