Correlation Between China Asset and Anhui Jinhe
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By analyzing existing cross correlation between China Asset Management and Anhui Jinhe Industrial, you can compare the effects of market volatilities on China Asset and Anhui Jinhe 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 China Asset with a short position of Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Anhui Jinhe.
Diversification Opportunities for China Asset and Anhui Jinhe
-0.5 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Anhui is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial and China Asset 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 China Asset Management are associated (or correlated) with Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of China Asset i.e., China Asset and Anhui Jinhe go up and down completely randomly.
Pair Corralation between China Asset and Anhui Jinhe
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.58 times more return on investment than Anhui Jinhe. However, China Asset Management is 1.71 times less risky than Anhui Jinhe. It trades about 0.57 of its potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.16 per unit of risk. If you would invest 353.00 in China Asset Management on October 25, 2024 and sell it today you would earn a total of 44.00 from holding China Asset Management or generate 12.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| China Asset Management |
| Anhui Jinhe Industrial |
China Asset and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Anhui Jinhe
The main advantage of trading using opposite China Asset and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Anhui Jinhe 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 Jinhe will offset losses from the drop in Anhui Jinhe's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Rongsheng Petrochemical Co |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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