Correlation Between Industrial and Anhui Transport
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By analyzing existing cross correlation between Industrial and Commercial and Anhui Transport Consulting, you can compare the effects of market volatilities on Industrial and Anhui Transport 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 Industrial with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anhui Transport.
Diversification Opportunities for Industrial and Anhui Transport
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Anhui is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and Industrial 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 Industrial and Commercial are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Industrial i.e., Industrial and Anhui Transport go up and down completely randomly.
Pair Corralation between Industrial and Anhui Transport
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.6 times more return on investment than Anhui Transport. However, Industrial and Commercial is 1.66 times less risky than Anhui Transport. It trades about 0.08 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.01 per unit of risk. If you would invest 543.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Industrial and Commercial or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Anhui Transport Consulting
Performance |
| Timeline |
| Industrial and Commercial |
| Anhui Transport Cons |
Industrial and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Anhui Transport
The main advantage of trading using opposite Industrial and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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