Correlation Between Yangmei Chemical and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yangmei Chemical Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Yangmei Chemical 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 Yangmei Chemical with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Anhui Jianghuai.
Diversification Opportunities for Yangmei Chemical and Anhui Jianghuai
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yangmei and Anhui is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co 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 Yangmei Chemical 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 Yangmei Chemical Co 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 Yangmei Chemical i.e., Yangmei Chemical and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Anhui Jianghuai
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to generate 0.92 times more return on investment than Anhui Jianghuai. However, Yangmei Chemical Co is 1.09 times less risky than Anhui Jianghuai. It trades about 0.29 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.22 per unit of risk. If you would invest 152.00 in Yangmei Chemical Co on September 12, 2024 and sell it today you would earn a total of 136.00 from holding Yangmei Chemical Co or generate 89.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Yangmei Chemical |
| Anhui Jianghuai Auto |
Yangmei Chemical and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Anhui Jianghuai
The main advantage of trading using opposite Yangmei Chemical and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical 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.| Yangmei Chemical vs. Tianjin Pengling Rubber | Yangmei Chemical vs. King Strong New Material | Yangmei Chemical vs. Panda Financial Holding | Yangmei Chemical vs. Bank of Suzhou |
| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |