Correlation Between Sunny Loan and Anhui Tongguan
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By analyzing existing cross correlation between Sunny Loan Top and Anhui Tongguan Copper, you can compare the effects of market volatilities on Sunny Loan and Anhui Tongguan 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 Sunny Loan with a short position of Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Anhui Tongguan.
Diversification Opportunities for Sunny Loan and Anhui Tongguan
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sunny and Anhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper and Sunny Loan 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 Sunny Loan Top are associated (or correlated) with Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Sunny Loan i.e., Sunny Loan and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Sunny Loan and Anhui Tongguan
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Sunny Loan Top is 1.87 times less risky than Anhui Tongguan. The stock trades about -0.04 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,000.00 in Anhui Tongguan Copper on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Anhui Tongguan Copper or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Sunny Loan Top |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anhui Tongguan Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Sunny Loan and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Anhui Tongguan
The main advantage of trading using opposite Sunny Loan and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan position performs unexpectedly, Anhui Tongguan 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 Tongguan will offset losses from the drop in Anhui Tongguan's long position.The idea behind Sunny Loan Top and Anhui Tongguan Copper pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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