Correlation Between Anhui Jianghuai and Beijing New
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Beijing New Building, you can compare the effects of market volatilities on Anhui Jianghuai and Beijing New 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 Beijing New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Beijing New.
Diversification Opportunities for Anhui Jianghuai and Beijing New
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Beijing is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Beijing New Building in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing New Building 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 Beijing New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing New Building has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Beijing New go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Beijing New
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.64 times more return on investment than Beijing New. However, Anhui Jianghuai is 1.64 times more volatile than Beijing New Building. It trades about 0.07 of its potential returns per unit of risk. Beijing New Building is currently generating about 0.03 per unit of risk. If you would invest 1,413 in Anhui Jianghuai Automobile on September 5, 2024 and sell it today you would earn a total of 2,072 from holding Anhui Jianghuai Automobile or generate 146.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Beijing New Building
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Beijing New Building |
Anhui Jianghuai and Beijing New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Beijing New
The main advantage of trading using opposite Anhui Jianghuai and Beijing New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Beijing New 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 Beijing New will offset losses from the drop in Beijing New's long position.| Anhui Jianghuai vs. Guangzhou KingTeller Technology | Anhui Jianghuai vs. Keli Sensing Technology | Anhui Jianghuai vs. HUAQIN TECHNOLOGY LTD | Anhui Jianghuai vs. Soyea Technology Co |
| Beijing New vs. Railway Signal Communication | Beijing New vs. Anhui Jianghuai Automobile | Beijing New vs. Runjian Communication Co | Beijing New vs. ButOne Information Corp |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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