Correlation Between Anhui Transport and Weihai Guangwei
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By analyzing existing cross correlation between Anhui Transport Consulting and Weihai Guangwei Composites, you can compare the effects of market volatilities on Anhui Transport and Weihai Guangwei 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 Weihai Guangwei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Weihai Guangwei.
Diversification Opportunities for Anhui Transport and Weihai Guangwei
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Weihai is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Weihai Guangwei Composites in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Weihai Guangwei Comp 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 Weihai Guangwei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Weihai Guangwei Comp has no effect on the direction of Anhui Transport i.e., Anhui Transport and Weihai Guangwei go up and down completely randomly.
Pair Corralation between Anhui Transport and Weihai Guangwei
Assuming the 90 days trading horizon Anhui Transport is expected to generate 2.12 times less return on investment than Weihai Guangwei. In addition to that, Anhui Transport is 1.0 times more volatile than Weihai Guangwei Composites. It trades about 0.03 of its total potential returns per unit of risk. Weihai Guangwei Composites is currently generating about 0.07 per unit of volatility. If you would invest 2,394 in Weihai Guangwei Composites on September 14, 2024 and sell it today you would earn a total of 1,123 from holding Weihai Guangwei Composites or generate 46.91% 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. Weihai Guangwei Composites
Performance |
| Timeline |
| Anhui Transport Cons |
| Weihai Guangwei Comp |
Anhui Transport and Weihai Guangwei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Weihai Guangwei
The main advantage of trading using opposite Anhui Transport and Weihai Guangwei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Weihai Guangwei 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 Weihai Guangwei will offset losses from the drop in Weihai Guangwei's long position.| Anhui Transport vs. Cambricon Technologies Corp | Anhui Transport vs. Loongson Technology Corp | Anhui Transport vs. Shenzhen Fortune Trend | Anhui Transport vs. Chongqing Road Bridge |
| Weihai Guangwei vs. Nanjing Putian Telecommunications | Weihai Guangwei vs. Beijing Sanyuan Foods | Weihai Guangwei vs. Shenzhen Kexin Communication | Weihai Guangwei vs. Qingdao Foods 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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