Correlation Between Anhui Transport and Suzhou Industrial
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By analyzing existing cross correlation between Anhui Transport Consulting and Suzhou Industrial Park, you can compare the effects of market volatilities on Anhui Transport and Suzhou Industrial 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 Suzhou Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Suzhou Industrial.
Diversification Opportunities for Anhui Transport and Suzhou Industrial
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Suzhou is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Suzhou Industrial Park in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Industrial Park 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 Suzhou Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Industrial Park has no effect on the direction of Anhui Transport i.e., Anhui Transport and Suzhou Industrial go up and down completely randomly.
Pair Corralation between Anhui Transport and Suzhou Industrial
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.23 times more return on investment than Suzhou Industrial. However, Anhui Transport Consulting is 4.31 times less risky than Suzhou Industrial. It trades about -0.23 of its potential returns per unit of risk. Suzhou Industrial Park is currently generating about -0.17 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Suzhou Industrial Park
Performance |
| Timeline |
| Anhui Transport Cons |
| Suzhou Industrial Park |
Anhui Transport and Suzhou Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Suzhou Industrial
The main advantage of trading using opposite Anhui Transport and Suzhou Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Suzhou Industrial 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 Suzhou Industrial will offset losses from the drop in Suzhou Industrial'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 |
| Suzhou Industrial vs. Anhui Tongguan Copper | Suzhou Industrial vs. Eastroc Beverage Group | Suzhou Industrial vs. Zotye Automobile Co | Suzhou Industrial vs. Sinomach Automobile Co |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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