Correlation Between Anhui Jianghuai and Imeik Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Imeik Technology Development, you can compare the effects of market volatilities on Anhui Jianghuai and Imeik Technology 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 Imeik Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Imeik Technology.
Diversification Opportunities for Anhui Jianghuai and Imeik Technology
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Imeik is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Imeik Technology Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Imeik Technology Dev 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 Imeik Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Imeik Technology Dev has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Imeik Technology go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Imeik Technology
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 2.28 times more return on investment than Imeik Technology. However, Anhui Jianghuai is 2.28 times more volatile than Imeik Technology Development. It trades about 0.28 of its potential returns per unit of risk. Imeik Technology Development is currently generating about -0.06 per unit of risk. If you would invest 3,565 in Anhui Jianghuai Automobile on November 4, 2024 and sell it today you would earn a total of 524.00 from holding Anhui Jianghuai Automobile or generate 14.7% 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. Imeik Technology Development
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Imeik Technology Dev |
Anhui Jianghuai and Imeik Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Imeik Technology
The main advantage of trading using opposite Anhui Jianghuai and Imeik Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Imeik Technology 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 Imeik Technology will offset losses from the drop in Imeik Technology's long position.| Anhui Jianghuai vs. Offshore Oil Engineering | Anhui Jianghuai vs. Ping An Insurance | Anhui Jianghuai vs. CSSC Offshore Marine | Anhui Jianghuai vs. Shenzhen AV Display Co |
| Imeik Technology vs. Xinhua Winshare Publishing | Imeik Technology vs. Shandong Intco Medical | Imeik Technology vs. Chinese Universe Publishing | Imeik Technology vs. BrightGene Bio Medical |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| 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 | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities |