Correlation Between Anhui Transport and Shenzhen Topway
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By analyzing existing cross correlation between Anhui Transport Consulting and Shenzhen Topway Video, you can compare the effects of market volatilities on Anhui Transport and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Shenzhen Topway.
Diversification Opportunities for Anhui Transport and Shenzhen Topway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Shenzhen is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Anhui Transport i.e., Anhui Transport and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Anhui Transport and Shenzhen Topway
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.46 times more return on investment than Shenzhen Topway. However, Anhui Transport Consulting is 2.18 times less risky than Shenzhen Topway. It trades about -0.23 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about -0.13 per unit of risk. If you would invest 924.00 in Anhui Transport Consulting on October 28, 2024 and sell it today you would lose (54.00) from holding Anhui Transport Consulting or give up 5.84% 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. Shenzhen Topway Video
Performance |
| Timeline |
| Anhui Transport Cons |
| Shenzhen Topway Video |
Anhui Transport and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Shenzhen Topway
The main advantage of trading using opposite Anhui Transport and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway'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 |
| Shenzhen Topway vs. Liaoning Dingjide Petrochemical | Shenzhen Topway vs. Shenzhen Noposion Agrochemicals | Shenzhen Topway vs. HeBei Jinniu Chemical | Shenzhen Topway vs. Tianjin Ruixin Technology |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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