Correlation Between Anhui Xinhua and Guangdong Qunxing
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By analyzing existing cross correlation between Anhui Xinhua Media and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Anhui Xinhua and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Guangdong Qunxing.
Diversification Opportunities for Anhui Xinhua and Guangdong Qunxing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Guangdong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Guangdong Qunxing
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 0.52 times more return on investment than Guangdong Qunxing. However, Anhui Xinhua Media is 1.91 times less risky than Guangdong Qunxing. It trades about 0.11 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.0 per unit of risk. If you would invest 696.00 in Anhui Xinhua Media on September 27, 2024 and sell it today you would earn a total of 34.00 from holding Anhui Xinhua Media or generate 4.89% 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. Guangdong Qunxing Toys
Performance |
| Timeline |
| Anhui Xinhua Media |
| Guangdong Qunxing Toys |
Anhui Xinhua and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Guangdong Qunxing
The main advantage of trading using opposite Anhui Xinhua and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Anhui Xinhua vs. Biwin Storage Technology | Anhui Xinhua vs. PetroChina Co Ltd | Anhui Xinhua vs. Industrial and Commercial | Anhui Xinhua vs. China Construction Bank |
| Guangdong Qunxing vs. Anhui Transport Consulting | Guangdong Qunxing vs. Anhui Xinhua Media | Guangdong Qunxing vs. Sportsoul Co Ltd | Guangdong Qunxing vs. Jiangsu Jinling Sports |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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