Correlation Between Kangxin New and Anhui Tongguan
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By analyzing existing cross correlation between Kangxin New Materials and Anhui Tongguan Copper, you can compare the effects of market volatilities on Kangxin New and Anhui Tongguan 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 Kangxin New with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Anhui Tongguan.
Diversification Opportunities for Kangxin New and Anhui Tongguan
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kangxin and Anhui is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper and Kangxin New 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 Kangxin New Materials are associated (or correlated) with Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Kangxin New i.e., Kangxin New and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Kangxin New and Anhui Tongguan
Assuming the 90 days trading horizon Kangxin New Materials is expected to generate 1.08 times more return on investment than Anhui Tongguan. However, Kangxin New is 1.08 times more volatile than Anhui Tongguan Copper. It trades about 0.13 of its potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.11 per unit of risk. If you would invest 139.00 in Kangxin New Materials on October 18, 2024 and sell it today you would earn a total of 58.00 from holding Kangxin New Materials or generate 41.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Kangxin New Materials |
| Anhui Tongguan Copper |
Kangxin New and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Anhui Tongguan
The main advantage of trading using opposite Kangxin New and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Anhui Tongguan 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 Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Kangxin New vs. Fujian Wanchen Biotechnology | Kangxin New vs. State Grid InformationCommunication | Kangxin New vs. Anhui Jianghuai Automobile | Kangxin New vs. Jiangsu GDK Biotechnology |
| Anhui Tongguan vs. Shanghai Ziyan Foods | Anhui Tongguan vs. Chongqing Sulian Plastic | Anhui Tongguan vs. Kangxin New Materials | Anhui Tongguan vs. Guilin Seamild Foods |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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