Correlation Between Anhui Xinhua and Beijing Mainstreets
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By analyzing existing cross correlation between Anhui Xinhua Media and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Anhui Xinhua and Beijing Mainstreets 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 Anhui Xinhua with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Beijing Mainstreets.
Diversification Opportunities for Anhui Xinhua and Beijing Mainstreets
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Beijing is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Anhui Xinhua 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 Anhui Xinhua Media are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Beijing Mainstreets
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 0.76 times more return on investment than Beijing Mainstreets. However, Anhui Xinhua Media is 1.32 times less risky than Beijing Mainstreets. It trades about 0.03 of its potential returns per unit of risk. Beijing Mainstreets Investment is currently generating about -0.02 per unit of risk. If you would invest 551.00 in Anhui Xinhua Media on October 16, 2024 and sell it today you would earn a total of 105.00 from holding Anhui Xinhua Media or generate 19.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Anhui Xinhua Media |
| Beijing Mainstreets |
Anhui Xinhua and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Beijing Mainstreets
The main advantage of trading using opposite Anhui Xinhua and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.| Anhui Xinhua vs. Anhui Jianghuai Automobile | Anhui Xinhua vs. Suzhou Douson Drilling | Anhui Xinhua vs. Lootom Telcovideo Network | Anhui Xinhua vs. Shenzhen Topway Video |
| Beijing Mainstreets vs. Shanghai Newtouch Software | Beijing Mainstreets vs. Anhui Xinhua Media | Beijing Mainstreets vs. Omnijoi Media Corp | Beijing Mainstreets vs. China Publishing Media |
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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