Correlation Between Anhui Jianghuai and Kunwu Jiuding
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Anhui Jianghuai and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Kunwu Jiuding.
Diversification Opportunities for Anhui Jianghuai and Kunwu Jiuding
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Kunwu is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Kunwu Jiuding
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.72 times more return on investment than Kunwu Jiuding. However, Anhui Jianghuai Automobile is 1.39 times less risky than Kunwu Jiuding. It trades about 0.12 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.13 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Kunwu Jiuding Investment |
Anhui Jianghuai and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Kunwu Jiuding
The main advantage of trading using opposite Anhui Jianghuai and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding'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 |
| Kunwu Jiuding vs. Industrial and Commercial | Kunwu Jiuding vs. Agricultural Bank of | Kunwu Jiuding vs. China Construction Bank | Kunwu Jiuding vs. Bank of China |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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