Correlation Between Anhui Tongguan and Shantou Wanshun
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By analyzing existing cross correlation between Anhui Tongguan Copper and Shantou Wanshun Package, you can compare the effects of market volatilities on Anhui Tongguan and Shantou Wanshun 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 Shantou Wanshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Shantou Wanshun.
Diversification Opportunities for Anhui Tongguan and Shantou Wanshun
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Shantou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Shantou Wanshun Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shantou Wanshun Package 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 Shantou Wanshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shantou Wanshun Package has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Shantou Wanshun go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Shantou Wanshun
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 0.93 times more return on investment than Shantou Wanshun. However, Anhui Tongguan Copper is 1.08 times less risky than Shantou Wanshun. It trades about 0.0 of its potential returns per unit of risk. Shantou Wanshun Package is currently generating about -0.04 per unit of risk. If you would invest 1,303 in Anhui Tongguan Copper on October 13, 2024 and sell it today you would lose (245.00) from holding Anhui Tongguan Copper or give up 18.8% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Tongguan Copper vs. Shantou Wanshun Package
Performance |
Timeline |
Anhui Tongguan Copper |
Shantou Wanshun Package |
Anhui Tongguan and Shantou Wanshun Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Tongguan and Shantou Wanshun
The main advantage of trading using opposite Anhui Tongguan and Shantou Wanshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Shantou Wanshun 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 Shantou Wanshun will offset losses from the drop in Shantou Wanshun's long position.Anhui Tongguan vs. Eastroc Beverage Group | Anhui Tongguan vs. Anhui Transport Consulting | Anhui Tongguan vs. Great Sun Foods Co | Anhui Tongguan vs. Muyuan Foodstuff Co |
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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