Correlation Between Anhui Jianghuai and Anhui Transport
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Anhui Transport Consulting, you can compare the effects of market volatilities on Anhui Jianghuai and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Anhui Transport.
Diversification Opportunities for Anhui Jianghuai and Anhui Transport
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Anhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Anhui Transport go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Anhui Transport
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Anhui Transport. In addition to that, Anhui Jianghuai is 2.17 times more volatile than Anhui Transport Consulting. It trades about -0.06 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.11 per unit of volatility. If you would invest 921.00 in Anhui Transport Consulting on August 31, 2024 and sell it today you would earn a total of 51.00 from holding Anhui Transport Consulting or generate 5.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Anhui Transport Consulting
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Anhui Transport Cons |
Anhui Jianghuai and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Anhui Transport
The main advantage of trading using opposite Anhui Jianghuai and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Anhui Jianghuai vs. China State Construction | Anhui Jianghuai vs. China Merchants Shekou | Anhui Jianghuai vs. Huafa Industrial Co | Anhui Jianghuai vs. China International Capital |
| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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