Correlation Between Anhui Jianghuai and Cultural Investment
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Cultural Investment Holdings, you can compare the effects of market volatilities on Anhui Jianghuai and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Cultural Investment.
Diversification Opportunities for Anhui Jianghuai and Cultural Investment
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Cultural is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Cultural Investment go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Cultural Investment
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.72 times more return on investment than Cultural Investment. However, Anhui Jianghuai is 1.72 times more volatile than Cultural Investment Holdings. It trades about 0.25 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.13 per unit of risk. If you would invest 3,602 in Anhui Jianghuai Automobile on November 3, 2024 and sell it today you would earn a total of 487.00 from holding Anhui Jianghuai Automobile or generate 13.52% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Cultural Investment |
Anhui Jianghuai and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Cultural Investment
The main advantage of trading using opposite Anhui Jianghuai and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Anhui Jianghuai vs. Changchun BCHT Biotechnology | Anhui Jianghuai vs. Beijing Jiaman Dress | Anhui Jianghuai vs. Jiangsu Jinling Sports | Anhui Jianghuai vs. China Sports Industry |
| Cultural Investment vs. Suzhou Weizhixiang Food | Cultural Investment vs. Guizhou Chanhen Chemical | Cultural Investment vs. Gan Yuan Foods | Cultural Investment vs. Bsm Chemical Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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