Correlation Between Anhui Transport and Bohai Leasing
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By analyzing existing cross correlation between Anhui Transport Consulting and Bohai Leasing Co, you can compare the effects of market volatilities on Anhui Transport and Bohai Leasing 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 Transport with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Bohai Leasing.
Diversification Opportunities for Anhui Transport and Bohai Leasing
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Bohai is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and Anhui Transport 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 Transport Consulting are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of Anhui Transport i.e., Anhui Transport and Bohai Leasing go up and down completely randomly.
Pair Corralation between Anhui Transport and Bohai Leasing
Assuming the 90 days trading horizon Anhui Transport is expected to generate 3.72 times less return on investment than Bohai Leasing. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.83 times less risky than Bohai Leasing. It trades about 0.08 of its potential returns per unit of risk. Bohai Leasing Co is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 214.00 in Bohai Leasing Co on October 18, 2024 and sell it today you would earn a total of 140.00 from holding Bohai Leasing Co or generate 65.42% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Transport Consulting vs. Bohai Leasing Co
Performance |
Timeline |
Anhui Transport Cons |
Bohai Leasing |
Anhui Transport and Bohai Leasing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Transport and Bohai Leasing
The main advantage of trading using opposite Anhui Transport and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.Anhui Transport vs. Luyin Investment Group | Anhui Transport vs. Zhejiang Construction Investment | Anhui Transport vs. Kunwu Jiuding Investment | Anhui Transport vs. Beijing Bewinner Communications |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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