Correlation Between Anhui Xinhua and Zhejiang Orient
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By analyzing existing cross correlation between Anhui Xinhua Media and Zhejiang Orient Gene, you can compare the effects of market volatilities on Anhui Xinhua and Zhejiang Orient 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 Zhejiang Orient. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Xinhua and Zhejiang Orient.
Diversification Opportunities for Anhui Xinhua and Zhejiang Orient
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Zhejiang is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Xinhua Media and Zhejiang Orient Gene in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Orient Gene 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 Zhejiang Orient. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Orient Gene has no effect on the direction of Anhui Xinhua i.e., Anhui Xinhua and Zhejiang Orient go up and down completely randomly.
Pair Corralation between Anhui Xinhua and Zhejiang Orient
Assuming the 90 days trading horizon Anhui Xinhua Media is expected to generate 1.22 times more return on investment than Zhejiang Orient. However, Anhui Xinhua is 1.22 times more volatile than Zhejiang Orient Gene. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Orient Gene is currently generating about -0.05 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 | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Xinhua Media vs. Zhejiang Orient Gene
Performance |
| Timeline |
| Anhui Xinhua Media |
| Zhejiang Orient Gene |
Anhui Xinhua and Zhejiang Orient Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Xinhua and Zhejiang Orient
The main advantage of trading using opposite Anhui Xinhua and Zhejiang Orient positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Xinhua position performs unexpectedly, Zhejiang Orient 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 Zhejiang Orient will offset losses from the drop in Zhejiang Orient's 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 |
| Zhejiang Orient vs. Ciwen Media Co | Zhejiang Orient vs. Anhui Xinhua Media | Zhejiang Orient vs. Runjian Communication Co | Zhejiang Orient vs. Duzhe 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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