Correlation Between Anhui Jianghuai and Nanjing OLO
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Nanjing OLO Home, you can compare the effects of market volatilities on Anhui Jianghuai and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Nanjing OLO.
Diversification Opportunities for Anhui Jianghuai and Nanjing OLO
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Nanjing is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Nanjing OLO go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Nanjing OLO
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.12 times more return on investment than Nanjing OLO. However, Anhui Jianghuai is 1.12 times more volatile than Nanjing OLO Home. It trades about 0.07 of its potential returns per unit of risk. Nanjing OLO Home is currently generating about -0.01 per unit of risk. If you would invest 1,681 in Anhui Jianghuai Automobile on October 28, 2024 and sell it today you would earn a total of 2,530 from holding Anhui Jianghuai Automobile or generate 150.51% 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. Nanjing OLO Home
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Nanjing OLO Home |
Anhui Jianghuai and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Nanjing OLO
The main advantage of trading using opposite Anhui Jianghuai and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| Anhui Jianghuai vs. Techshine Electronics Co | Anhui Jianghuai vs. Ningxia Younglight Chemicals | Anhui Jianghuai vs. HaiXin Foods Co | Anhui Jianghuai vs. Integrated Electronic Systems |
| Nanjing OLO vs. Shenwu Energy Saving | Nanjing OLO vs. Xinjiang Baodi Mining | Nanjing OLO vs. Xiamen Bank Co | Nanjing OLO vs. Guosheng Financial Holding |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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