Correlation Between Anhui Jianghuai and Chengdu Xingrong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Chengdu Xingrong Investment, you can compare the effects of market volatilities on Anhui Jianghuai and Chengdu Xingrong 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 Anhui Jianghuai with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Chengdu Xingrong.
Diversification Opportunities for Anhui Jianghuai and Chengdu Xingrong
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and Anhui Jianghuai 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 Anhui Jianghuai Automobile are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Chengdu Xingrong
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.7 times more return on investment than Chengdu Xingrong. However, Anhui Jianghuai is 1.7 times more volatile than Chengdu Xingrong Investment. It trades about 0.18 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about 0.0 per unit of risk. If you would invest 1,591 in Anhui Jianghuai Automobile on September 3, 2024 and sell it today you would earn a total of 2,025 from holding Anhui Jianghuai Automobile or generate 127.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Chengdu Xingrong Inv |
Anhui Jianghuai and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Chengdu Xingrong
The main advantage of trading using opposite Anhui Jianghuai and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. China Mobile Limited | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. China Life Insurance |
| Chengdu Xingrong vs. Shandong Polymer Biochemicals | Chengdu Xingrong vs. Time Publishing and | Chengdu Xingrong vs. Dymatic Chemicals | Chengdu Xingrong vs. Shandong Publishing Media |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios |