Correlation Between Fangda Special and Anhui Jianghuai
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By analyzing existing cross correlation between Fangda Special Steel and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Fangda Special and Anhui Jianghuai 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 Fangda Special with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fangda Special and Anhui Jianghuai.
Diversification Opportunities for Fangda Special and Anhui Jianghuai
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Fangda and Anhui is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Fangda Special Steel and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Fangda Special 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 Fangda Special Steel are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Fangda Special i.e., Fangda Special and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Fangda Special and Anhui Jianghuai
Assuming the 90 days trading horizon Fangda Special is expected to generate 2.27 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Fangda Special Steel is 1.16 times less risky than Anhui Jianghuai. It trades about 0.02 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,689 in Anhui Jianghuai Automobile on October 16, 2024 and sell it today you would earn a total of 81.00 from holding Anhui Jianghuai Automobile or generate 2.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fangda Special Steel vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Fangda Special Steel |
| Anhui Jianghuai Auto |
Fangda Special and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fangda Special and Anhui Jianghuai
The main advantage of trading using opposite Fangda Special and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fangda Special position performs unexpectedly, Anhui Jianghuai 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 Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Fangda Special vs. Qumei Furniture Group | Fangda Special vs. Nanjing OLO Home | Fangda Special vs. Keeson Technology Corp | Fangda Special vs. Smartgiant Technology Co |
| Anhui Jianghuai vs. Dynagreen Environmental Protection | Anhui Jianghuai vs. Shenzhen MYS Environmental | Anhui Jianghuai vs. Fangda Special Steel | 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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