Correlation Between Anhui Tongguan and Wuhan Yangtze
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By analyzing existing cross correlation between Anhui Tongguan Copper and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Anhui Tongguan and Wuhan Yangtze 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 Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Wuhan Yangtze.
Diversification Opportunities for Anhui Tongguan and Wuhan Yangtze
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Wuhan is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun 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 Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Wuhan Yangtze
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Tongguan Copper is 1.21 times less risky than Wuhan Yangtze. The stock trades about -0.01 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,812 in Wuhan Yangtze Communication on November 5, 2024 and sell it today you would earn a total of 481.00 from holding Wuhan Yangtze Communication or generate 26.55% 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. Wuhan Yangtze Communication
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Wuhan Yangtze Commun |
Anhui Tongguan and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Wuhan Yangtze
The main advantage of trading using opposite Anhui Tongguan and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze'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 |
| Wuhan Yangtze vs. Eastern Communications Co | Wuhan Yangtze vs. Jiangsu Jinling Sports | Wuhan Yangtze vs. Everdisplay Optronics Shanghai | Wuhan Yangtze vs. Beijing Bewinner Communications |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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