Correlation Between Anhui Xinhua and Ningbo Jintian
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By analyzing existing cross correlation between Anhui Xinhua Media and Ningbo Jintian Copper, you can compare the effects of market volatilities on Anhui Xinhua and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Ningbo Jintian.
Diversification Opportunities for Anhui Xinhua and Ningbo Jintian
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Ningbo is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Ningbo Jintian
Assuming the 90 days trading horizon Anhui Xinhua is expected to generate 2.31 times less return on investment than Ningbo Jintian. In addition to that, Anhui Xinhua is 1.08 times more volatile than Ningbo Jintian Copper. It trades about 0.05 of its total potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.11 per unit of volatility. If you would invest 467.00 in Ningbo Jintian Copper on October 18, 2024 and sell it today you would earn a total of 121.00 from holding Ningbo Jintian Copper or generate 25.91% 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. Ningbo Jintian Copper
Performance |
| Timeline |
| Anhui Xinhua Media |
| Ningbo Jintian Copper |
Anhui Xinhua and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Ningbo Jintian
The main advantage of trading using opposite Anhui Xinhua and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian'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 |
| Ningbo Jintian vs. Threes Company Media | Ningbo Jintian vs. Guangzhou Jinyi Media | Ningbo Jintian vs. Changjiang Publishing Media | Ningbo Jintian vs. Anhui Xinhua 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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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