Correlation Between Anhui Transport and China Express
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By analyzing existing cross correlation between Anhui Transport Consulting and China Express Airlines, you can compare the effects of market volatilities on Anhui Transport and China Express 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 China Express. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and China Express.
Diversification Opportunities for Anhui Transport and China Express
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and China is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and China Express Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Express Airlines 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 China Express. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Express Airlines has no effect on the direction of Anhui Transport i.e., Anhui Transport and China Express go up and down completely randomly.
Pair Corralation between Anhui Transport and China Express
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the China Express. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 1.02 times less risky than China Express. The stock trades about 0.0 of its potential returns per unit of risk. The China Express Airlines is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 829.00 in China Express Airlines on August 31, 2024 and sell it today you would earn a total of 15.00 from holding China Express Airlines or generate 1.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. China Express Airlines
Performance |
| Timeline |
| Anhui Transport Cons |
| China Express Airlines |
Anhui Transport and China Express Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and China Express
The main advantage of trading using opposite Anhui Transport and China Express positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, China Express 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 China Express will offset losses from the drop in China Express' long position.| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology Co |
| China Express vs. Cowealth Medical China | China Express vs. GKHT Medical Technology | China Express vs. Xian International Medical | China Express vs. Allmed Medical Products |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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