Correlation Between Anhui Conch and East Money
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By analyzing existing cross correlation between Anhui Conch Cement and East Money Information, you can compare the effects of market volatilities on Anhui Conch and East Money 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 Conch with a short position of East Money. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and East Money.
Diversification Opportunities for Anhui Conch and East Money
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and East is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and East Money Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East Money Information and Anhui Conch 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 Conch Cement are associated (or correlated) with East Money. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East Money Information has no effect on the direction of Anhui Conch i.e., Anhui Conch and East Money go up and down completely randomly.
Pair Corralation between Anhui Conch and East Money
Assuming the 90 days trading horizon Anhui Conch Cement is expected to generate 0.58 times more return on investment than East Money. However, Anhui Conch Cement is 1.73 times less risky than East Money. It trades about -0.32 of its potential returns per unit of risk. East Money Information is currently generating about -0.35 per unit of risk. If you would invest 2,611 in Anhui Conch Cement on October 14, 2024 and sell it today you would lose (238.00) from holding Anhui Conch Cement or give up 9.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Conch Cement vs. East Money Information
Performance |
| Timeline |
| Anhui Conch Cement |
| East Money Information |
Anhui Conch and East Money Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and East Money
The main advantage of trading using opposite Anhui Conch and East Money positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch position performs unexpectedly, East Money 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 East Money will offset losses from the drop in East Money's long position.| Anhui Conch vs. Zijin Mining Group | Anhui Conch vs. Wanhua Chemical Group | Anhui Conch vs. Baoshan Iron Steel | Anhui Conch vs. Shandong Gold Mining |
| East Money vs. Semiconductor Manufacturing Intl | East Money vs. Sungrow Power Supply | East Money vs. Anhui Conch Cement | East Money vs. Shenzhen New Nanshan |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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