Correlation Between Beijing Jiaman and Anhui Transport
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By analyzing existing cross correlation between Beijing Jiaman Dress and Anhui Transport Consulting, you can compare the effects of market volatilities on Beijing Jiaman and Anhui Transport 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 Beijing Jiaman with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Anhui Transport.
Diversification Opportunities for Beijing Jiaman and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and Beijing Jiaman 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 Beijing Jiaman Dress are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Beijing Jiaman i.e., Beijing Jiaman and Anhui Transport go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Anhui Transport
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Anhui Transport. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.18 times less risky than Anhui Transport. The stock trades about 0.0 of its potential returns per unit of risk. The Anhui Transport Consulting is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 753.00 in Anhui Transport Consulting on September 5, 2024 and sell it today you would earn a total of 224.00 from holding Anhui Transport Consulting or generate 29.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Jiaman Dress vs. Anhui Transport Consulting
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Anhui Transport Cons |
Beijing Jiaman and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Anhui Transport
The main advantage of trading using opposite Beijing Jiaman and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Beijing Jiaman vs. Beijing Sanyuan Foods | Beijing Jiaman vs. Xiwang Foodstuffs Co | Beijing Jiaman vs. DO Home Collection | Beijing Jiaman vs. Zoy Home Furnishing |
| Anhui Transport vs. Jilin Chemical Fibre | Anhui Transport vs. North Huajin Chemical | Anhui Transport vs. Shaanxi Beiyuan Chemical | Anhui Transport vs. Beijing Jiaman Dress |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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