Correlation Between Anhui Jianghuai and Do Fluoride
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Do Fluoride Chemicals Co, you can compare the effects of market volatilities on Anhui Jianghuai and Do Fluoride 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 Do Fluoride. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Do Fluoride.
Diversification Opportunities for Anhui Jianghuai and Do Fluoride
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and 002407 is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Do Fluoride Chemicals Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Do Fluoride Chemicals 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 Do Fluoride. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Do Fluoride Chemicals has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Do Fluoride go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Do Fluoride
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.48 times more return on investment than Do Fluoride. However, Anhui Jianghuai is 1.48 times more volatile than Do Fluoride Chemicals Co. It trades about 0.12 of its potential returns per unit of risk. Do Fluoride Chemicals Co is currently generating about -0.25 per unit of risk. If you would invest 3,946 in Anhui Jianghuai Automobile on October 28, 2024 and sell it today you would earn a total of 265.00 from holding Anhui Jianghuai Automobile or generate 6.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Do Fluoride Chemicals Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Do Fluoride Chemicals |
Anhui Jianghuai and Do Fluoride Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Do Fluoride
The main advantage of trading using opposite Anhui Jianghuai and Do Fluoride positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Do Fluoride 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 Do Fluoride will offset losses from the drop in Do Fluoride's long position.| Anhui Jianghuai vs. Techshine Electronics Co | Anhui Jianghuai vs. Ningxia Younglight Chemicals | Anhui Jianghuai vs. HaiXin Foods Co | Anhui Jianghuai vs. Integrated Electronic Systems |
| Do Fluoride vs. Zijin Mining Group | Do Fluoride vs. Wanhua Chemical Group | Do Fluoride vs. Baoshan Iron Steel | Do Fluoride vs. Shandong Gold Mining |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |