Correlation Between Anhui Jianghuai and Pengxin International
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Pengxin International Mining, you can compare the effects of market volatilities on Anhui Jianghuai and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Pengxin International.
Diversification Opportunities for Anhui Jianghuai and Pengxin International
0.23 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Pengxin is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Pengxin International go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Pengxin International
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.79 times more return on investment than Pengxin International. However, Anhui Jianghuai Automobile is 1.26 times less risky than Pengxin International. It trades about 0.14 of its potential returns per unit of risk. Pengxin International Mining is currently generating about -0.25 per unit of risk. If you would invest 3,897 in Anhui Jianghuai Automobile on October 27, 2024 and sell it today you would earn a total of 314.00 from holding Anhui Jianghuai Automobile or generate 8.06% 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. Pengxin International Mining
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Pengxin International |
Anhui Jianghuai and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Pengxin International
The main advantage of trading using opposite Anhui Jianghuai and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International's long position.| Anhui Jianghuai vs. Bank of Suzhou | Anhui Jianghuai vs. Shanghai Yanpu Metal | Anhui Jianghuai vs. Financial Street Holdings | Anhui Jianghuai vs. Guangdong Jingyi Metal |
| Pengxin International vs. Panda Financial Holding | Pengxin International vs. Healthcare Co | Pengxin International vs. Ningbo Tech Bank Co | Pengxin International vs. Peoples Insurance of |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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