Correlation Between Anhui Transport and Hunan Investment
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Hunan Investment Group, you can compare the effects of market volatilities on Anhui Transport and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Hunan Investment.
Diversification Opportunities for Anhui Transport and Hunan Investment
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Hunan is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Anhui Transport i.e., Anhui Transport and Hunan Investment go up and down completely randomly.
Pair Corralation between Anhui Transport and Hunan Investment
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.73 times more return on investment than Hunan Investment. However, Anhui Transport Consulting is 1.38 times less risky than Hunan Investment. It trades about -0.43 of its potential returns per unit of risk. Hunan Investment Group is currently generating about -0.37 per unit of risk. If you would invest 996.00 in Anhui Transport Consulting on October 12, 2024 and sell it today you would lose (146.00) from holding Anhui Transport Consulting or give up 14.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Hunan Investment Group
Performance |
| Timeline |
| Anhui Transport Cons |
| Hunan Investment |
Anhui Transport and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Hunan Investment
The main advantage of trading using opposite Anhui Transport and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Anhui Transport vs. Emdoor Information Co | Anhui Transport vs. Do Fluoride Chemicals Co | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Sharetronic Data Technology |
| Hunan Investment vs. Techshine Electronics Co | Hunan Investment vs. Leyard Optoelectronic | Hunan Investment vs. Shenzhen Clou Electronics | Hunan Investment vs. Songz Automobile Air |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |