Correlation Between Anhui Transport and Chongqing Shunbo
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By analyzing existing cross correlation between Anhui Transport Consulting and Chongqing Shunbo Aluminum, you can compare the effects of market volatilities on Anhui Transport and Chongqing Shunbo 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 Chongqing Shunbo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Chongqing Shunbo.
Diversification Opportunities for Anhui Transport and Chongqing Shunbo
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Chongqing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Chongqing Shunbo Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Shunbo Aluminum 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 Chongqing Shunbo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Shunbo Aluminum has no effect on the direction of Anhui Transport i.e., Anhui Transport and Chongqing Shunbo go up and down completely randomly.
Pair Corralation between Anhui Transport and Chongqing Shunbo
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.82 times more return on investment than Chongqing Shunbo. However, Anhui Transport Consulting is 1.22 times less risky than Chongqing Shunbo. It trades about 0.27 of its potential returns per unit of risk. Chongqing Shunbo Aluminum is currently generating about -0.03 per unit of risk. If you would invest 873.00 in Anhui Transport Consulting on December 1, 2024 and sell it today you would earn a total of 56.00 from holding Anhui Transport Consulting or generate 6.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Chongqing Shunbo Aluminum
Performance |
| Timeline |
| Anhui Transport Cons |
| Chongqing Shunbo Aluminum |
Anhui Transport and Chongqing Shunbo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Chongqing Shunbo
The main advantage of trading using opposite Anhui Transport and Chongqing Shunbo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Chongqing Shunbo 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 Chongqing Shunbo will offset losses from the drop in Chongqing Shunbo's long position.| Anhui Transport vs. Aluminum Corp of | Anhui Transport vs. HeBei Jinniu Chemical | Anhui Transport vs. Ningbo Ligong Online | Anhui Transport vs. ZYF Lopsking Aluminum |
| Chongqing Shunbo vs. PKU HealthCare Corp | Chongqing Shunbo vs. Servyou Software Group | Chongqing Shunbo vs. Digiwin Software Co | Chongqing Shunbo vs. Impulse Qingdao Health |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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