Correlation Between Anhui Jianghuai and Dynagreen Environmental
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Dynagreen Environmental Protection, you can compare the effects of market volatilities on Anhui Jianghuai and Dynagreen Environmental 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 Dynagreen Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Dynagreen Environmental.
Diversification Opportunities for Anhui Jianghuai and Dynagreen Environmental
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Dynagreen is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Dynagreen Environmental Protec in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dynagreen Environmental 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 Dynagreen Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dynagreen Environmental has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Dynagreen Environmental go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Dynagreen Environmental
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.46 times more return on investment than Dynagreen Environmental. However, Anhui Jianghuai is 1.46 times more volatile than Dynagreen Environmental Protection. It trades about -0.18 of its potential returns per unit of risk. Dynagreen Environmental Protection is currently generating about -0.33 per unit of risk. If you would invest 3,846 in Anhui Jianghuai Automobile on October 14, 2024 and sell it today you would lose (321.00) from holding Anhui Jianghuai Automobile or give up 8.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Dynagreen Environmental Protec
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Dynagreen Environmental |
Anhui Jianghuai and Dynagreen Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Dynagreen Environmental
The main advantage of trading using opposite Anhui Jianghuai and Dynagreen Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Dynagreen Environmental 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 Dynagreen Environmental will offset losses from the drop in Dynagreen Environmental's long position.| Anhui Jianghuai vs. Huayi Brothers Media | Anhui Jianghuai vs. China Reform Health | Anhui Jianghuai vs. Chengdu B ray Media | Anhui Jianghuai vs. Hengdian Entertainment 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 Global Correlations module to find global opportunities by holding instruments from different markets.
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