Correlation Between Anhui Jianghuai and Zhejiang HISUN
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Zhejiang HISUN Biomaterials, you can compare the effects of market volatilities on Anhui Jianghuai and Zhejiang HISUN 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 Zhejiang HISUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Zhejiang HISUN.
Diversification Opportunities for Anhui Jianghuai and Zhejiang HISUN
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Zhejiang HISUN Biomaterials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang HISUN Bioma 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 Zhejiang HISUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang HISUN Bioma has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Zhejiang HISUN go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Zhejiang HISUN
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.37 times more return on investment than Zhejiang HISUN. However, Anhui Jianghuai is 1.37 times more volatile than Zhejiang HISUN Biomaterials. It trades about 0.08 of its potential returns per unit of risk. Zhejiang HISUN Biomaterials is currently generating about -0.02 per unit of risk. If you would invest 1,367 in Anhui Jianghuai Automobile on September 12, 2024 and sell it today you would earn a total of 2,286 from holding Anhui Jianghuai Automobile or generate 167.23% 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. Zhejiang HISUN Biomaterials
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Zhejiang HISUN Bioma |
Anhui Jianghuai and Zhejiang HISUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Zhejiang HISUN
The main advantage of trading using opposite Anhui Jianghuai and Zhejiang HISUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Zhejiang HISUN 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 Zhejiang HISUN will offset losses from the drop in Zhejiang HISUN'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 |
| Zhejiang HISUN vs. Nanjing Putian Telecommunications | Zhejiang HISUN vs. Eastern Communications Co | Zhejiang HISUN vs. Anhui Jianghuai Automobile | Zhejiang HISUN vs. China World Trade |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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