Correlation Between Anhui Tongguan and Sunny Loan
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By analyzing existing cross correlation between Anhui Tongguan Copper and Sunny Loan Top, you can compare the effects of market volatilities on Anhui Tongguan and Sunny Loan 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 Sunny Loan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Sunny Loan.
Diversification Opportunities for Anhui Tongguan and Sunny Loan
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Sunny is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Sunny Loan Top in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunny Loan Top 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 Sunny Loan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunny Loan Top has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Sunny Loan go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Sunny Loan
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to generate 0.88 times more return on investment than Sunny Loan. However, Anhui Tongguan Copper is 1.14 times less risky than Sunny Loan. It trades about 0.03 of its potential returns per unit of risk. Sunny Loan Top is currently generating about -0.21 per unit of risk. If you would invest 1,091 in Anhui Tongguan Copper on October 17, 2024 and sell it today you would earn a total of 9.00 from holding Anhui Tongguan Copper or generate 0.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Sunny Loan Top
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Sunny Loan Top |
Anhui Tongguan and Sunny Loan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Sunny Loan
The main advantage of trading using opposite Anhui Tongguan and Sunny Loan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Sunny Loan 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 Sunny Loan will offset losses from the drop in Sunny Loan's long position.| Anhui Tongguan vs. Shanghai Ziyan Foods | Anhui Tongguan vs. Chongqing Sulian Plastic | Anhui Tongguan vs. Kangxin New Materials | Anhui Tongguan vs. Guilin Seamild Foods |
| Sunny Loan vs. Anhui Gujing Distillery | Sunny Loan vs. Beijing Shunxin Agriculture | Sunny Loan vs. Shenyang Huitian Thermal | Sunny Loan 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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