Correlation Between Anhui Jianghuai and China Citic
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and China Citic Bank, you can compare the effects of market volatilities on Anhui Jianghuai and China Citic 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 Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and China Citic.
Diversification Opportunities for Anhui Jianghuai and China Citic
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and China is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and China Citic go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and China Citic
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.98 times more return on investment than China Citic. However, Anhui Jianghuai is 1.98 times more volatile than China Citic Bank. It trades about 0.09 of its potential returns per unit of risk. China Citic Bank is currently generating about 0.06 per unit of risk. If you would invest 1,839 in Anhui Jianghuai Automobile on September 14, 2024 and sell it today you would earn a total of 2,091 from holding Anhui Jianghuai Automobile or generate 113.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.62% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. China Citic Bank
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| China Citic Bank |
Anhui Jianghuai and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and China Citic
The main advantage of trading using opposite Anhui Jianghuai and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, China Citic 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 Citic will offset losses from the drop in China Citic's long position.| Anhui Jianghuai vs. Nanya New Material | Anhui Jianghuai vs. Changchun Faway Automobile | Anhui Jianghuai vs. Ningbo Fangzheng Automobile | Anhui Jianghuai vs. Cicc Fund Management |
| China Citic vs. Guangdong Qunxing Toys | China Citic vs. Haima Automobile Group | China Citic vs. Shandong Iron and | China Citic 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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