Correlation Between Anhui Jianghuai and Western Superconducting
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Western Superconducting Tech, you can compare the effects of market volatilities on Anhui Jianghuai and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Western Superconducting.
Diversification Opportunities for Anhui Jianghuai and Western Superconducting
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Western is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Western Superconducting go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Western Superconducting
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.28 times more return on investment than Western Superconducting. However, Anhui Jianghuai is 1.28 times more volatile than Western Superconducting Tech. It trades about 0.11 of its potential returns per unit of risk. Western Superconducting Tech is currently generating about 0.0 per unit of risk. If you would invest 1,718 in Anhui Jianghuai Automobile on September 12, 2024 and sell it today you would earn a total of 2,246 from holding Anhui Jianghuai Automobile or generate 130.73% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Western Superconducting Tech
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Western Superconducting |
Anhui Jianghuai and Western Superconducting Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Western Superconducting
The main advantage of trading using opposite Anhui Jianghuai and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.| Anhui Jianghuai vs. Lutian Machinery Co | Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. Bank of China | Anhui Jianghuai vs. Gansu Jiu Steel |
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 Stocks Directory module to find actively traded stocks across global markets.
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