Correlation Between Anhui Xinhua and Chengdu Xinzhu
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By analyzing existing cross correlation between Anhui Xinhua Media and Chengdu Xinzhu RoadBridge, you can compare the effects of market volatilities on Anhui Xinhua and Chengdu Xinzhu 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 Chengdu Xinzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Chengdu Xinzhu.
Diversification Opportunities for Anhui Xinhua and Chengdu Xinzhu
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Chengdu is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Chengdu Xinzhu RoadBridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xinzhu RoadBridge has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Chengdu Xinzhu go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Chengdu Xinzhu
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to under-perform the Chengdu Xinzhu. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Xinhua Media is 2.62 times less risky than Chengdu Xinzhu. The stock trades about -0.28 of its potential returns per unit of risk. The Chengdu Xinzhu RoadBridge is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 575.00 in Chengdu Xinzhu RoadBridge on October 14, 2024 and sell it today you would lose (38.00) from holding Chengdu Xinzhu RoadBridge or give up 6.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Chengdu Xinzhu RoadBridge
Performance |
| Timeline |
| Anhui Xinhua Media |
| Chengdu Xinzhu RoadBridge |
Anhui Xinhua and Chengdu Xinzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Chengdu Xinzhu
The main advantage of trading using opposite Anhui Xinhua and Chengdu Xinzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Chengdu Xinzhu 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 Chengdu Xinzhu will offset losses from the drop in Chengdu Xinzhu's long position.| Anhui Xinhua vs. China Sports Industry | Anhui Xinhua vs. Lontium Semiconductor Corp | Anhui Xinhua vs. Union Semiconductor Co | Anhui Xinhua vs. Suzhou Douson Drilling |
| Chengdu Xinzhu vs. Allgens Medical Technology | Chengdu Xinzhu vs. Innovative Medical Management | Chengdu Xinzhu vs. Fujian Wanchen Biotechnology | Chengdu Xinzhu vs. Guangdong Marubi Biotechnology |
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 CEOs Directory module to screen CEOs from public companies around the world.
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