Correlation Between Anhui Transport and Shijiazhuang Tonhe
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By analyzing existing cross correlation between Anhui Transport Consulting and Shijiazhuang Tonhe Electronics, you can compare the effects of market volatilities on Anhui Transport and Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Shijiazhuang Tonhe.
Diversification Opportunities for Anhui Transport and Shijiazhuang Tonhe
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Shijiazhuang is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Shijiazhuang Tonhe Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shijiazhuang Tonhe 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 Shijiazhuang Tonhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shijiazhuang Tonhe has no effect on the direction of Anhui Transport i.e., Anhui Transport and Shijiazhuang Tonhe go up and down completely randomly.
Pair Corralation between Anhui Transport and Shijiazhuang Tonhe
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.28 times more return on investment than Shijiazhuang Tonhe. However, Anhui Transport Consulting is 3.6 times less risky than Shijiazhuang Tonhe. It trades about -0.45 of its potential returns per unit of risk. Shijiazhuang Tonhe Electronics is currently generating about -0.14 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 | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Shijiazhuang Tonhe Electronics
Performance |
| Timeline |
| Anhui Transport Cons |
| Shijiazhuang Tonhe |
Anhui Transport and Shijiazhuang Tonhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Shijiazhuang Tonhe
The main advantage of trading using opposite Anhui Transport and Shijiazhuang Tonhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Shijiazhuang Tonhe 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 Shijiazhuang Tonhe will offset losses from the drop in Shijiazhuang Tonhe's long position.| Anhui Transport vs. Ningbo Kangqiang Electronics | Anhui Transport vs. Rising Nonferrous Metals | Anhui Transport vs. China Minmetals Rare | Anhui Transport vs. Sihui Fuji Electronics |
| Shijiazhuang Tonhe vs. Beijing Jiaman Dress | Shijiazhuang Tonhe vs. Anhui Transport Consulting | Shijiazhuang Tonhe vs. Changjiang Jinggong Steel | Shijiazhuang Tonhe vs. Road Environment 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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