Correlation Between Anhui Jianghuai and China Satellite
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and China Satellite Communications, you can compare the effects of market volatilities on Anhui Jianghuai and China Satellite 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 China Satellite. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and China Satellite.
Diversification Opportunities for Anhui Jianghuai and China Satellite
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and China is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and China Satellite Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Satellite Comm 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 China Satellite. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Satellite Comm has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and China Satellite go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and China Satellite
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 0.91 times more return on investment than China Satellite. However, Anhui Jianghuai Automobile is 1.1 times less risky than China Satellite. It trades about -0.16 of its potential returns per unit of risk. China Satellite Communications is currently generating about -0.42 per unit of risk. If you would invest 3,689 in Anhui Jianghuai Automobile on October 16, 2024 and sell it today you would lose (251.00) from holding Anhui Jianghuai Automobile or give up 6.8% 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. China Satellite Communications
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| China Satellite Comm |
Anhui Jianghuai and China Satellite Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and China Satellite
The main advantage of trading using opposite Anhui Jianghuai and China Satellite positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, China Satellite 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 China Satellite will offset losses from the drop in China Satellite's long position.| Anhui Jianghuai vs. Bohai Leasing Co | Anhui Jianghuai vs. JCHX Mining Management | Anhui Jianghuai vs. Yili Chuanning Biotechnology | Anhui Jianghuai vs. Fujian Oriental Silver |
| China Satellite vs. Dymatic Chemicals | China Satellite vs. Yingde Greatchem Chemicals | China Satellite vs. Caihong Display Devices | China Satellite vs. Anhui Jianghuai Automobile |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |