Correlation Between Anhui Jianghuai and Guangzhou Shiyuan
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Guangzhou Shiyuan Electronic, you can compare the effects of market volatilities on Anhui Jianghuai and Guangzhou Shiyuan 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 Guangzhou Shiyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Guangzhou Shiyuan.
Diversification Opportunities for Anhui Jianghuai and Guangzhou Shiyuan
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Guangzhou is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Guangzhou Shiyuan Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shiyuan 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 Guangzhou Shiyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shiyuan has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Guangzhou Shiyuan go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Guangzhou Shiyuan
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.41 times more return on investment than Guangzhou Shiyuan. However, Anhui Jianghuai is 1.41 times more volatile than Guangzhou Shiyuan Electronic. It trades about 0.03 of its potential returns per unit of risk. Guangzhou Shiyuan Electronic is currently generating about -0.31 per unit of risk. If you would invest 3,785 in Anhui Jianghuai Automobile on October 20, 2024 and sell it today you would earn a total of 52.00 from holding Anhui Jianghuai Automobile or generate 1.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Guangzhou Shiyuan Electronic
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Guangzhou Shiyuan |
Anhui Jianghuai and Guangzhou Shiyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Guangzhou Shiyuan
The main advantage of trading using opposite Anhui Jianghuai and Guangzhou Shiyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Guangzhou Shiyuan 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 Guangzhou Shiyuan will offset losses from the drop in Guangzhou Shiyuan's long position.| Anhui Jianghuai vs. Jiangsu Jinling Sports | Anhui Jianghuai vs. Shuhua Sports Co | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Fujian Longzhou Transportation |
| Guangzhou Shiyuan vs. Iat Automobile Technology | Guangzhou Shiyuan vs. Songz Automobile Air | Guangzhou Shiyuan vs. Ningbo Tip Rubber | Guangzhou Shiyuan vs. Jiangnan Mould Plastic |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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