Correlation Between Anhui Jianghuai and Beijing Wantai
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Beijing Wantai Biological, you can compare the effects of market volatilities on Anhui Jianghuai and Beijing Wantai 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 Beijing Wantai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Beijing Wantai.
Diversification Opportunities for Anhui Jianghuai and Beijing Wantai
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Beijing is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Beijing Wantai Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Wantai Biological 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 Beijing Wantai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Wantai Biological has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Beijing Wantai go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Beijing Wantai
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 2.17 times more return on investment than Beijing Wantai. However, Anhui Jianghuai is 2.17 times more volatile than Beijing Wantai Biological. It trades about 0.08 of its potential returns per unit of risk. Beijing Wantai Biological is currently generating about -0.09 per unit of risk. If you would invest 3,463 in Anhui Jianghuai Automobile on October 24, 2024 and sell it today you would earn a total of 543.00 from holding Anhui Jianghuai Automobile or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Beijing Wantai Biological
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Beijing Wantai Biological |
Anhui Jianghuai and Beijing Wantai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Beijing Wantai
The main advantage of trading using opposite Anhui Jianghuai and Beijing Wantai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Beijing Wantai 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 Beijing Wantai will offset losses from the drop in Beijing Wantai's long position.| Anhui Jianghuai vs. New Hope Dairy | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Marssenger Kitchenware Co | Anhui Jianghuai vs. Sichuan Fulin Transportation |
| Beijing Wantai vs. Shenyang Chemical Industry | Beijing Wantai vs. Tongyu Communication | Beijing Wantai vs. Anhui Jianghuai Automobile | Beijing Wantai vs. Haima Automobile Group |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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