Correlation Between Anhui Jianghuai and Emdoor Information
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Emdoor Information Co, you can compare the effects of market volatilities on Anhui Jianghuai and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Emdoor Information.
Diversification Opportunities for Anhui Jianghuai and Emdoor Information
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Emdoor is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Emdoor Information go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Emdoor Information
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.51 times more return on investment than Emdoor Information. However, Anhui Jianghuai Automobile is 1.97 times less risky than Emdoor Information. It trades about 0.07 of its potential returns per unit of risk. Emdoor Information Co is currently generating about -0.04 per unit of risk. If you would invest 3,689 in Anhui Jianghuai Automobile on October 17, 2024 and sell it today you would earn a total of 131.00 from holding Anhui Jianghuai Automobile or generate 3.55% 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. Emdoor Information Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Emdoor Information |
Anhui Jianghuai and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Emdoor Information
The main advantage of trading using opposite Anhui Jianghuai and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| Anhui Jianghuai vs. Goodwill E Health | Anhui Jianghuai vs. BTG Hotels Group | Anhui Jianghuai vs. Mingchen Health Co | Anhui Jianghuai vs. Humanwell Healthcare Group |
| Emdoor Information vs. Jiangsu Financial Leasing | Emdoor Information vs. Jiugui Liquor Co | Emdoor Information vs. Sino Platinum Metals Co | Emdoor Information vs. Jinhui Liquor Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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