Correlation Between Anhui Jianghuai and Ming Yang
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Ming Yang Smart, you can compare the effects of market volatilities on Anhui Jianghuai and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Ming Yang.
Diversification Opportunities for Anhui Jianghuai and Ming Yang
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Ming is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Ming Yang go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Ming Yang
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.37 times more return on investment than Ming Yang. However, Anhui Jianghuai is 1.37 times more volatile than Ming Yang Smart. It trades about 0.12 of its potential returns per unit of risk. Ming Yang Smart is currently generating about -0.01 per unit of risk. If you would invest 1,505 in Anhui Jianghuai Automobile on October 30, 2024 and sell it today you would earn a total of 2,584 from holding Anhui Jianghuai Automobile or generate 171.69% 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. Ming Yang Smart
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Ming Yang Smart |
Anhui Jianghuai and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Ming Yang
The main advantage of trading using opposite Anhui Jianghuai and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang'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 |
| Ming Yang vs. Sino Platinum Metals Co | Ming Yang vs. Pengxin International Mining | Ming Yang vs. Xinjiang Communications Construction | Ming Yang vs. Eastern Communications 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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