Correlation Between Anhui Transport and Anshan Senyuan
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By analyzing existing cross correlation between Anhui Transport Consulting and Anshan Senyuan Road, you can compare the effects of market volatilities on Anhui Transport and Anshan Senyuan 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 Anshan Senyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Anshan Senyuan.
Diversification Opportunities for Anhui Transport and Anshan Senyuan
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Anshan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Anshan Senyuan Road in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anshan Senyuan Road 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 Anshan Senyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anshan Senyuan Road has no effect on the direction of Anhui Transport i.e., Anhui Transport and Anshan Senyuan go up and down completely randomly.
Pair Corralation between Anhui Transport and Anshan Senyuan
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.45 times more return on investment than Anshan Senyuan. However, Anhui Transport Consulting is 2.22 times less risky than Anshan Senyuan. It trades about -0.44 of its potential returns per unit of risk. Anshan Senyuan Road is currently generating about -0.33 per unit of risk. If you would invest 973.00 in Anhui Transport Consulting on October 16, 2024 and sell it today you would lose (128.00) from holding Anhui Transport Consulting or give up 13.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Anshan Senyuan Road
Performance |
| Timeline |
| Anhui Transport Cons |
| Anshan Senyuan Road |
Anhui Transport and Anshan Senyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Anshan Senyuan
The main advantage of trading using opposite Anhui Transport and Anshan Senyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Anshan Senyuan 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 Anshan Senyuan will offset losses from the drop in Anshan Senyuan's long position.| Anhui Transport vs. Allied Machinery Co | Anhui Transport vs. Hunan Tyen Machinery | Anhui Transport vs. CareRay Digital Medical | Anhui Transport vs. Xiangyu Medical Co |
| Anshan Senyuan vs. Tongyu Communication | Anshan Senyuan vs. Guangxi Wuzhou Communications | Anshan Senyuan vs. China Mobile Limited | Anshan Senyuan vs. Guangzhou Haige Communications |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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