Correlation Between Anhui Jianghuai and Shengda Mining
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Shengda Mining Co, you can compare the effects of market volatilities on Anhui Jianghuai and Shengda Mining 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 Shengda Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Shengda Mining.
Diversification Opportunities for Anhui Jianghuai and Shengda Mining
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Shengda is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Shengda Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengda Mining 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 Shengda Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengda Mining has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Shengda Mining go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Shengda Mining
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.57 times more return on investment than Shengda Mining. However, Anhui Jianghuai is 1.57 times more volatile than Shengda Mining Co. It trades about 0.19 of its potential returns per unit of risk. Shengda Mining Co is currently generating about 0.09 per unit of risk. If you would invest 1,820 in Anhui Jianghuai Automobile on November 3, 2024 and sell it today you would earn a total of 2,269 from holding Anhui Jianghuai Automobile or generate 124.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.16% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Shengda Mining Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Shengda Mining |
Anhui Jianghuai and Shengda Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Shengda Mining
The main advantage of trading using opposite Anhui Jianghuai and Shengda Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Shengda Mining 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 Shengda Mining will offset losses from the drop in Shengda Mining's long position.| Anhui Jianghuai vs. Changchun BCHT Biotechnology | Anhui Jianghuai vs. Beijing Jiaman Dress | Anhui Jianghuai vs. Jiangsu Jinling Sports | Anhui Jianghuai vs. China Sports Industry |
| Shengda Mining vs. Fuda Alloy Materials | Shengda Mining vs. Lander Sports Development | Shengda Mining vs. Shuhua Sports Co | Shengda Mining vs. China Sports Industry |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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