Correlation Between Anhui Tongguan and Zhejiang Qianjiang
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By analyzing existing cross correlation between Anhui Tongguan Copper and Zhejiang Qianjiang Motorcycle, you can compare the effects of market volatilities on Anhui Tongguan and Zhejiang Qianjiang 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 Zhejiang Qianjiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Zhejiang Qianjiang.
Diversification Opportunities for Anhui Tongguan and Zhejiang Qianjiang
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Zhejiang is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Zhejiang Qianjiang Motorcycle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Qianjiang 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 Zhejiang Qianjiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Qianjiang has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Zhejiang Qianjiang go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Zhejiang Qianjiang
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Zhejiang Qianjiang. In addition to that, Anhui Tongguan is 1.3 times more volatile than Zhejiang Qianjiang Motorcycle. It trades about -0.06 of its total potential returns per unit of risk. Zhejiang Qianjiang Motorcycle is currently generating about 0.13 per unit of volatility. If you would invest 1,706 in Zhejiang Qianjiang Motorcycle on October 12, 2024 and sell it today you would earn a total of 133.00 from holding Zhejiang Qianjiang Motorcycle or generate 7.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Zhejiang Qianjiang Motorcycle
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Zhejiang Qianjiang |
Anhui Tongguan and Zhejiang Qianjiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Zhejiang Qianjiang
The main advantage of trading using opposite Anhui Tongguan and Zhejiang Qianjiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Zhejiang Qianjiang 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 Zhejiang Qianjiang will offset losses from the drop in Zhejiang Qianjiang's long position.| Anhui Tongguan vs. Hainan Haiqi Transportation | Anhui Tongguan vs. Bingo Software Co | Anhui Tongguan vs. Dareway Software Co | Anhui Tongguan vs. RoadMain T Co |
| Zhejiang Qianjiang vs. Western Metal Materials | Zhejiang Qianjiang vs. Ningbo Jintian Copper | Zhejiang Qianjiang vs. Beijing HuaYuanYiTong Thermal | Zhejiang Qianjiang vs. Anhui Tongguan Copper |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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