Correlation Between Anhui Transport and Marssenger Kitchenware
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Marssenger Kitchenware Co, you can compare the effects of market volatilities on Anhui Transport and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Marssenger Kitchenware.
Diversification Opportunities for Anhui Transport and Marssenger Kitchenware
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Marssenger is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of Anhui Transport i.e., Anhui Transport and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between Anhui Transport and Marssenger Kitchenware
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.79 times more return on investment than Marssenger Kitchenware. However, Anhui Transport Consulting is 1.26 times less risky than Marssenger Kitchenware. It trades about 0.02 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.04 per unit of risk. If you would invest 757.00 in Anhui Transport Consulting on October 14, 2024 and sell it today you would earn a total of 93.00 from holding Anhui Transport Consulting or generate 12.29% 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. Marssenger Kitchenware Co
Performance |
| Timeline |
| Anhui Transport Cons |
| Marssenger Kitchenware |
Anhui Transport and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Marssenger Kitchenware
The main advantage of trading using opposite Anhui Transport and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. China Mobile Limited | Anhui Transport vs. CNOOC Limited | Anhui Transport vs. Ping An Insurance |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments |