Correlation Between Anhui Tongguan and Guangdong Jingyi
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By analyzing existing cross correlation between Anhui Tongguan Copper and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Anhui Tongguan 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 Tongguan with a short position of Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Guangdong Jingyi.
Diversification Opportunities for Anhui Tongguan and Guangdong Jingyi
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Guangdong is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper 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 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 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 Tongguan i.e., Anhui Tongguan and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Guangdong Jingyi
Assuming the 90 days trading horizon Anhui Tongguan is expected to generate 62.64 times less return on investment than Guangdong Jingyi. In addition to that, Anhui Tongguan is 1.32 times more volatile than Guangdong Jingyi Metal. It trades about 0.0 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.26 per unit of volatility. If you would invest 646.00 in Guangdong Jingyi Metal on November 3, 2024 and sell it today you would earn a total of 83.00 from holding Guangdong Jingyi Metal or generate 12.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Guangdong Jingyi Metal |
Anhui Tongguan and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Guangdong Jingyi
The main advantage of trading using opposite Anhui Tongguan and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan 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 Tongguan vs. Nanjing Putian Telecommunications | Anhui Tongguan vs. Cloud Live Technology | Anhui Tongguan vs. Shenzhen Coship Electronics | Anhui Tongguan vs. Shenzhen Hifuture Electric |
| Guangdong Jingyi vs. Allmed Medical Products | Guangdong Jingyi vs. Hengkang Medical Group | Guangdong Jingyi vs. Touchstone International Medical | Guangdong Jingyi vs. Chengtun Mining Group |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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