Correlation Between Anhui Transport and Haima Automobile
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By analyzing existing cross correlation between Anhui Transport Consulting and Haima Automobile Group, you can compare the effects of market volatilities on Anhui Transport and Haima Automobile 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 Haima Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Haima Automobile.
Diversification Opportunities for Anhui Transport and Haima Automobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Haima is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Haima Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Haima Automobile 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 Haima Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Haima Automobile has no effect on the direction of Anhui Transport i.e., Anhui Transport and Haima Automobile go up and down completely randomly.
Pair Corralation between Anhui Transport and Haima Automobile
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.46 times more return on investment than Haima Automobile. However, Anhui Transport Consulting is 2.17 times less risky than Haima Automobile. It trades about 0.1 of its potential returns per unit of risk. Haima Automobile Group is currently generating about -0.12 per unit of risk. If you would invest 938.00 in Anhui Transport Consulting on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Anhui Transport Consulting or generate 4.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Haima Automobile Group
Performance |
| Timeline |
| Anhui Transport Cons |
| Haima Automobile |
Anhui Transport and Haima Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Haima Automobile
The main advantage of trading using opposite Anhui Transport and Haima Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Haima Automobile 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 Haima Automobile will offset losses from the drop in Haima Automobile's long position.| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
| Haima Automobile vs. Biwin Storage Technology | Haima Automobile vs. PetroChina Co Ltd | Haima Automobile vs. Industrial and Commercial | Haima Automobile vs. China Construction Bank |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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