Correlation Between Anhui Transport and Guangdong Qunxing
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By analyzing existing cross correlation between Anhui Transport Consulting and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Anhui Transport and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Guangdong Qunxing.
Diversification Opportunities for Anhui Transport and Guangdong Qunxing
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Anhui Transport i.e., Anhui Transport and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Anhui Transport and Guangdong Qunxing
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.89 times more return on investment than Guangdong Qunxing. However, Anhui Transport Consulting is 1.12 times less risky than Guangdong Qunxing. It trades about 0.03 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about 0.02 per unit of risk. If you would invest 785.00 in Anhui Transport Consulting on August 24, 2024 and sell it today you would earn a total of 156.00 from holding Anhui Transport Consulting or generate 19.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Anhui Transport Cons |
| Guangdong Qunxing Toys |
Anhui Transport and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Guangdong Qunxing
The main advantage of trading using opposite Anhui Transport and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Anhui Transport vs. Chengdu Kanghua Biological | Anhui Transport vs. Beijing Wantai Biological | Anhui Transport vs. Suzhou Novoprotein Scientific | Anhui Transport vs. Aluminum Corp of |
| Guangdong Qunxing vs. Kweichow Moutai Co | Guangdong Qunxing vs. Contemporary Amperex Technology | Guangdong Qunxing vs. G bits Network Technology | Guangdong Qunxing vs. Beijing Roborock 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 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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