Correlation Between Anhui Jianghuai and Porton Fine
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Porton Fine Chemicals, you can compare the effects of market volatilities on Anhui Jianghuai and Porton Fine 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 Porton Fine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Porton Fine.
Diversification Opportunities for Anhui Jianghuai and Porton Fine
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Porton is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Porton Fine Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Porton Fine 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 Porton Fine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Porton Fine Chemicals has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Porton Fine go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Porton Fine
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.56 times more return on investment than Porton Fine. However, Anhui Jianghuai is 1.56 times more volatile than Porton Fine Chemicals. It trades about 0.07 of its potential returns per unit of risk. Porton Fine Chemicals is currently generating about -0.33 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Porton Fine Chemicals
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Porton Fine Chemicals |
Anhui Jianghuai and Porton Fine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Porton Fine
The main advantage of trading using opposite Anhui Jianghuai and Porton Fine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Porton Fine 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 Porton Fine will offset losses from the drop in Porton Fine'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 |
| Porton Fine vs. Haima Automobile Group | Porton Fine vs. Changchun Engley Automobile | Porton Fine vs. Huaxia Fund Management | Porton Fine vs. Anhui Jianghuai Automobile |
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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