Correlation Between Anhui Jianghuai and Fujian Nanwang
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Fujian Nanwang Environment, you can compare the effects of market volatilities on Anhui Jianghuai and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Fujian Nanwang.
Diversification Opportunities for Anhui Jianghuai and Fujian Nanwang
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Fujian is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Fujian Nanwang
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Fujian Nanwang. In addition to that, Anhui Jianghuai is 1.14 times more volatile than Fujian Nanwang Environment. It trades about -0.22 of its total potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.2 per unit of volatility. If you would invest 1,293 in Fujian Nanwang Environment on October 13, 2024 and sell it today you would earn a total of 106.00 from holding Fujian Nanwang Environment or generate 8.2% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Fujian Nanwang Envir |
Anhui Jianghuai and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Fujian Nanwang
The main advantage of trading using opposite Anhui Jianghuai and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Anhui Jianghuai vs. Huayi Brothers Media | Anhui Jianghuai vs. China Reform Health | Anhui Jianghuai vs. Chengdu B ray Media | Anhui Jianghuai vs. Hengdian Entertainment Co |
| Fujian Nanwang vs. Hefei Metalforming Mach | Fujian Nanwang vs. Tianshan Aluminum Group | Fujian Nanwang vs. Anhui Jianghuai Automobile | Fujian Nanwang vs. Yindu Kitchen Equipment |
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 Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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