Correlation Between Chengdu B and Anhui Jianghuai
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By analyzing existing cross correlation between Chengdu B ray Media and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Anhui Jianghuai.
Diversification Opportunities for Chengdu B and Anhui Jianghuai
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Chengdu and Anhui is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media 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 Chengdu B 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 Chengdu B ray Media 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 Chengdu B i.e., Chengdu B and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Chengdu B and Anhui Jianghuai
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu B ray Media is 1.16 times less risky than Anhui Jianghuai. The stock trades about 0.0 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,621 in Anhui Jianghuai Automobile on October 13, 2024 and sell it today you would earn a total of 1,904 from holding Anhui Jianghuai Automobile or generate 117.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Chengdu B ray |
| Anhui Jianghuai Auto |
Chengdu B and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Anhui Jianghuai
The main advantage of trading using opposite Chengdu B and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Offcn Education Technology | Chengdu B vs. Tangel Publishing | Chengdu B vs. Northern United Publishing | Chengdu B vs. Qijing Machinery |
| Anhui Jianghuai vs. Huayi Brothers Media | Anhui Jianghuai vs. China Reform Health | Anhui Jianghuai vs. Chengdu B ray Media | Anhui Jianghuai vs. Hengdian Entertainment Co |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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