Correlation Between Anhui Jianghuai and Beijing Bewinner
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Beijing Bewinner Communications, you can compare the effects of market volatilities on Anhui Jianghuai and Beijing Bewinner 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 Bewinner. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Beijing Bewinner.
Diversification Opportunities for Anhui Jianghuai and Beijing Bewinner
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Beijing is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Beijing Bewinner Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Bewinner Com 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 Bewinner. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Bewinner Com has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Beijing Bewinner go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Beijing Bewinner
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Beijing Bewinner. In addition to that, Anhui Jianghuai is 1.44 times more volatile than Beijing Bewinner Communications. It trades about -0.13 of its total potential returns per unit of risk. Beijing Bewinner Communications is currently generating about 0.09 per unit of volatility. If you would invest 603.00 in Beijing Bewinner Communications on September 1, 2024 and sell it today you would earn a total of 31.00 from holding Beijing Bewinner Communications or generate 5.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Beijing Bewinner Communication
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Beijing Bewinner Com |
Anhui Jianghuai and Beijing Bewinner Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Beijing Bewinner
The main advantage of trading using opposite Anhui Jianghuai and Beijing Bewinner positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Beijing Bewinner 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 Bewinner will offset losses from the drop in Beijing Bewinner's long position.| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
| Beijing Bewinner vs. New China Life | Beijing Bewinner vs. Ming Yang Smart | Beijing Bewinner vs. 159681 | Beijing Bewinner vs. 159005 |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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