Correlation Between Anhui Jianghuai and Allwin Telecommunicatio
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Allwin Telecommunication Co, you can compare the effects of market volatilities on Anhui Jianghuai and Allwin Telecommunicatio 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 Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Allwin Telecommunicatio.
Diversification Opportunities for Anhui Jianghuai and Allwin Telecommunicatio
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Allwin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio 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 Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Allwin Telecommunicatio
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.91 times more return on investment than Allwin Telecommunicatio. However, Anhui Jianghuai Automobile is 1.1 times less risky than Allwin Telecommunicatio. It trades about 0.1 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.01 per unit of risk. If you would invest 1,783 in Anhui Jianghuai Automobile on August 29, 2024 and sell it today you would earn a total of 1,936 from holding Anhui Jianghuai Automobile or generate 108.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Allwin Telecommunicatio |
Anhui Jianghuai and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Allwin Telecommunicatio
The main advantage of trading using opposite Anhui Jianghuai and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. Bank of China | Anhui Jianghuai vs. China Construction Bank |
| Allwin Telecommunicatio vs. Anhui Deli Household | Allwin Telecommunicatio vs. Soyea Technology Co | Allwin Telecommunicatio vs. Holitech Technology Co | Allwin Telecommunicatio vs. Jahen Household Products |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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