Correlation Between Anhui Jianghuai and Shanghai Jinfeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Anhui Jianghuai and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Shanghai Jinfeng.
Diversification Opportunities for Anhui Jianghuai and Shanghai Jinfeng
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Shanghai is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Shanghai Jinfeng
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Shanghai Jinfeng. In addition to that, Anhui Jianghuai is 1.98 times more volatile than Shanghai Jinfeng Wine. It trades about -0.28 of its total potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.03 per unit of volatility. If you would invest 521.00 in Shanghai Jinfeng Wine on November 28, 2024 and sell it today you would earn a total of 3.00 from holding Shanghai Jinfeng Wine or generate 0.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Shanghai Jinfeng Wine |
Anhui Jianghuai and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Shanghai Jinfeng
The main advantage of trading using opposite Anhui Jianghuai and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Anhui Jianghuai vs. China Longyuan Power | Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. Guangxi Guiguan Electric | Anhui Jianghuai vs. Yantai North Andre |
| Shanghai Jinfeng vs. Xizi Clean Energy | Shanghai Jinfeng vs. Shannon Semiconductor Technology | Shanghai Jinfeng vs. Shaanxi Meineng Clean | Shanghai Jinfeng vs. Ingenic Semiconductor |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |