Correlation Between Xiamen Bank and Anhui Jianghuai
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By analyzing existing cross correlation between Xiamen Bank Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Xiamen Bank 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 Xiamen Bank with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Bank and Anhui Jianghuai.
Diversification Opportunities for Xiamen Bank and Anhui Jianghuai
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiamen and Anhui is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank 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 Xiamen Bank i.e., Xiamen Bank and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Xiamen Bank and Anhui Jianghuai
Assuming the 90 days trading horizon Xiamen Bank is expected to generate 5.78 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Xiamen Bank Co is 2.45 times less risky than Anhui Jianghuai. It trades about 0.04 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,783 in Anhui Jianghuai Automobile on August 29, 2024 and sell it today you would earn a total of 1,936 from holding Anhui Jianghuai Automobile or generate 108.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Bank Co vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Xiamen Bank |
| Anhui Jianghuai Auto |
Xiamen Bank and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Bank and Anhui Jianghuai
The main advantage of trading using opposite Xiamen Bank and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Bank 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.| Xiamen Bank vs. Kweichow Moutai Co | Xiamen Bank vs. Contemporary Amperex Technology | Xiamen Bank vs. G bits Network Technology | Xiamen Bank vs. BYD Co Ltd |
| Anhui Jianghuai vs. Agricultural Bank of | Anhui Jianghuai vs. Industrial and Commercial | Anhui Jianghuai vs. Bank of China | Anhui Jianghuai vs. China Construction Bank |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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