Correlation Between Jiangxi Copper and Anhui Transport
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By analyzing existing cross correlation between Jiangxi Copper Co and Anhui Transport Consulting, you can compare the effects of market volatilities on Jiangxi Copper 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 Jiangxi Copper with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Copper and Anhui Transport.
Diversification Opportunities for Jiangxi Copper and Anhui Transport
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Anhui is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Copper Co 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 Jiangxi Copper 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 Jiangxi Copper Co 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 Jiangxi Copper i.e., Jiangxi Copper and Anhui Transport go up and down completely randomly.
Pair Corralation between Jiangxi Copper and Anhui Transport
Assuming the 90 days trading horizon Jiangxi Copper Co is expected to generate 0.87 times more return on investment than Anhui Transport. However, Jiangxi Copper Co is 1.15 times less risky than Anhui Transport. It trades about 0.03 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.02 per unit of risk. If you would invest 2,026 in Jiangxi Copper Co on November 3, 2024 and sell it today you would earn a total of 84.00 from holding Jiangxi Copper Co or generate 4.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Copper Co vs. Anhui Transport Consulting
Performance |
| Timeline |
| Jiangxi Copper |
| Anhui Transport Cons |
Jiangxi Copper and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Copper and Anhui Transport
The main advantage of trading using opposite Jiangxi Copper and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Copper 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.| Jiangxi Copper vs. Suzhou Weizhixiang Food | Jiangxi Copper vs. Marssenger Kitchenware Co | Jiangxi Copper vs. Dr Peng Telecom | Jiangxi Copper vs. Jiahe Foods Industry |
| Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Kweichow Moutai Co | Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. China Mobile Limited |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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