Correlation Between Anhui Transport and ADAMA
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By analyzing existing cross correlation between Anhui Transport Consulting and ADAMA, you can compare the effects of market volatilities on Anhui Transport and ADAMA 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 ADAMA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and ADAMA.
Diversification Opportunities for Anhui Transport and ADAMA
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and ADAMA is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and ADAMA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ADAMA 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 ADAMA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ADAMA has no effect on the direction of Anhui Transport i.e., Anhui Transport and ADAMA go up and down completely randomly.
Pair Corralation between Anhui Transport and ADAMA
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 1.02 times more return on investment than ADAMA. However, Anhui Transport is 1.02 times more volatile than ADAMA. It trades about -0.02 of its potential returns per unit of risk. ADAMA is currently generating about -0.1 per unit of risk. If you would invest 993.00 in Anhui Transport Consulting on September 12, 2024 and sell it today you would lose (12.00) from holding Anhui Transport Consulting or give up 1.21% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. ADAMA
Performance |
| Timeline |
| Anhui Transport Cons |
| ADAMA |
Anhui Transport and ADAMA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and ADAMA
The main advantage of trading using opposite Anhui Transport and ADAMA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, ADAMA 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 ADAMA will offset losses from the drop in ADAMA's long position.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. PetroChina Co Ltd |
| ADAMA vs. Will Semiconductor Co | ADAMA vs. Guangzhou Restaurants Group | ADAMA vs. Anhui Transport Consulting | ADAMA vs. Nexchip Semiconductor Corp |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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