Correlation Between Chongqing Road and Anhui Transport
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By analyzing existing cross correlation between Chongqing Road Bridge and Anhui Transport Consulting, you can compare the effects of market volatilities on Chongqing Road 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 Chongqing Road with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Road and Anhui Transport.
Diversification Opportunities for Chongqing Road and Anhui Transport
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and Anhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Road Bridge 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 Chongqing Road 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 Chongqing Road Bridge 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 Chongqing Road i.e., Chongqing Road and Anhui Transport go up and down completely randomly.
Pair Corralation between Chongqing Road and Anhui Transport
Assuming the 90 days trading horizon Chongqing Road Bridge is expected to generate 1.3 times more return on investment than Anhui Transport. However, Chongqing Road is 1.3 times more volatile than Anhui Transport Consulting. It trades about 0.04 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.03 per unit of risk. If you would invest 611.00 in Chongqing Road Bridge on September 14, 2024 and sell it today you would earn a total of 134.00 from holding Chongqing Road Bridge or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Road Bridge vs. Anhui Transport Consulting
Performance |
| Timeline |
| Chongqing Road Bridge |
| Anhui Transport Cons |
Chongqing Road and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Road and Anhui Transport
The main advantage of trading using opposite Chongqing Road and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Road 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.| Chongqing Road vs. Anji Foodstuff Co | Chongqing Road vs. Shantou Wanshun Package | Chongqing Road vs. Shanghai Ziyan Foods | Chongqing Road vs. Jiahe Foods Industry |
| Anhui Transport vs. Cambricon Technologies Corp | Anhui Transport vs. Loongson Technology Corp | Anhui Transport vs. Shenzhen Fortune Trend | Anhui Transport vs. Chongqing Road Bridge |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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