Correlation Between Anhui Transport and Xiangyang Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Anhui Transport and Xiangyang 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Xiangyang Automobile.
Diversification Opportunities for Anhui Transport and Xiangyang Automobile
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Xiangyang is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Anhui Transport i.e., Anhui Transport and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Anhui Transport and Xiangyang Automobile
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.41 times less return on investment than Xiangyang Automobile. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.58 times less risky than Xiangyang Automobile. It trades about 0.1 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 564.00 in Xiangyang Automobile Bearing on September 1, 2024 and sell it today you would earn a total of 35.00 from holding Xiangyang Automobile Bearing or generate 6.21% 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. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Anhui Transport Cons |
| Xiangyang Automobile |
Anhui Transport and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Xiangyang Automobile
The main advantage of trading using opposite Anhui Transport and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Xiangyang 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 Xiangyang Automobile will offset losses from the drop in Xiangyang 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 |
| Xiangyang Automobile vs. BYD Co Ltd | Xiangyang Automobile vs. China Mobile Limited | Xiangyang Automobile vs. Agricultural Bank of | Xiangyang Automobile vs. Industrial and Commercial |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation |