Correlation Between Anhui Jianghuai and Xiangyang Automobile
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Anhui Jianghuai and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Xiangyang Automobile.
Diversification Opportunities for Anhui Jianghuai and Xiangyang Automobile
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Xiangyang is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Xiangyang Automobile
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.75 times more return on investment than Xiangyang Automobile. However, Anhui Jianghuai Automobile is 1.33 times less risky than Xiangyang Automobile. It trades about 0.25 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.16 per unit of risk. If you would invest 3,602 in Anhui Jianghuai Automobile on November 2, 2024 and sell it today you would earn a total of 487.00 from holding Anhui Jianghuai Automobile or generate 13.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Xiangyang Automobile |
Anhui Jianghuai and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Xiangyang Automobile
The main advantage of trading using opposite Anhui Jianghuai and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Anhui Jianghuai vs. Songz Automobile Air | Anhui Jianghuai vs. Jinhe Biotechnology Co | Anhui Jianghuai vs. China Mobile Limited | Anhui Jianghuai vs. Fujian Wanchen Biotechnology |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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