Correlation Between Anhui Jianghuai and Northern United
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Northern United Publishing, you can compare the effects of market volatilities on Anhui Jianghuai and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Northern United.
Diversification Opportunities for Anhui Jianghuai and Northern United
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Northern is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Northern United go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Northern United
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Northern United. In addition to that, Anhui Jianghuai is 1.43 times more volatile than Northern United Publishing. It trades about -0.12 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.19 per unit of volatility. If you would invest 684.00 in Northern United Publishing on September 14, 2024 and sell it today you would earn a total of 76.00 from holding Northern United Publishing or generate 11.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Northern United Publishing
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Northern United Publ |
Anhui Jianghuai and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Northern United
The main advantage of trading using opposite Anhui Jianghuai and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United'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 |
| Northern United vs. Guangzhou Haige Communications | Northern United vs. Songz Automobile Air | Northern United vs. Zhongtong Guomai Communication | Northern United 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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