Correlation Between Huitong Construction and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Huitong Construction Group and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Huitong Construction and Anhui Jianghuai 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 Huitong Construction with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Huitong Construction and Anhui Jianghuai.
Diversification Opportunities for Huitong Construction and Anhui Jianghuai
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Huitong and Anhui is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Huitong Construction Group and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Huitong Construction 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 Huitong Construction Group are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Huitong Construction i.e., Huitong Construction and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Huitong Construction and Anhui Jianghuai
Assuming the 90 days trading horizon Huitong Construction Group is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Huitong Construction Group is 1.37 times less risky than Anhui Jianghuai. The stock trades about -0.02 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 1,505 in Anhui Jianghuai Automobile on November 27, 2024 and sell it today you would earn a total of 2,008 from holding Anhui Jianghuai Automobile or generate 133.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Huitong Construction Group vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Huitong Construction |
| Anhui Jianghuai Auto |
Huitong Construction and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Huitong Construction and Anhui Jianghuai
The main advantage of trading using opposite Huitong Construction and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Huitong Construction position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Huitong Construction vs. PKU HealthCare Corp | Huitong Construction vs. Humanwell Healthcare Group | Huitong Construction vs. Guangzhou Seagull Kitchen | Huitong Construction vs. SSAW Hotels Resorts |
| Anhui Jianghuai vs. Nanjing Vishee Medical | Anhui Jianghuai vs. Shanghai Jinfeng Wine | Anhui Jianghuai vs. Fujian Oriental Silver | Anhui Jianghuai vs. Chengtun Mining Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |