Correlation Between Anhui Xinhua and Chongqing Sulian
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By analyzing existing cross correlation between Anhui Xinhua Media and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Anhui Xinhua and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Chongqing Sulian.
Diversification Opportunities for Anhui Xinhua and Chongqing Sulian
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Chongqing is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Chongqing Sulian
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 0.81 times more return on investment than Chongqing Sulian. However, Anhui Xinhua Media is 1.24 times less risky than Chongqing Sulian. It trades about -0.3 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about -0.28 per unit of risk. If you would invest 761.00 in Anhui Xinhua Media on October 17, 2024 and sell it today you would lose (93.00) from holding Anhui Xinhua Media or give up 12.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Chongqing Sulian Plastic
Performance |
| Timeline |
| Anhui Xinhua Media |
| Chongqing Sulian Plastic |
Anhui Xinhua and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Chongqing Sulian
The main advantage of trading using opposite Anhui Xinhua and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian's long position.| Anhui Xinhua vs. Quectel Wireless Solutions | Anhui Xinhua vs. Fiberhome Telecommunication Technologies | Anhui Xinhua vs. CareRay Digital Medical | Anhui Xinhua vs. Eyebright Medical Technology |
| Chongqing Sulian vs. Thinkingdom Media Group | Chongqing Sulian vs. Anhui Xinhua Media | Chongqing Sulian vs. Threes Company Media | Chongqing Sulian vs. Beijing Enlight 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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