Correlation Between Anhui Jianghuai and Kangxin New
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Kangxin New Materials, you can compare the effects of market volatilities on Anhui Jianghuai and Kangxin New 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 Kangxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Kangxin New.
Diversification Opportunities for Anhui Jianghuai and Kangxin New
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Kangxin is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Kangxin New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangxin New Materials 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 Kangxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangxin New Materials has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Kangxin New go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Kangxin New
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.97 times more return on investment than Kangxin New. However, Anhui Jianghuai Automobile is 1.03 times less risky than Kangxin New. It trades about 0.07 of its potential returns per unit of risk. Kangxin New Materials is currently generating about -0.49 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Kangxin New Materials
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Kangxin New Materials |
Anhui Jianghuai and Kangxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Kangxin New
The main advantage of trading using opposite Anhui Jianghuai and Kangxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Kangxin New 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 Kangxin New will offset losses from the drop in Kangxin New'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 |
| Kangxin New vs. Fujian Wanchen Biotechnology | Kangxin New vs. State Grid InformationCommunication | Kangxin New vs. Anhui Jianghuai Automobile | Kangxin New vs. Jiangsu GDK Biotechnology |
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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