Correlation Between Anhui Transport and Kunwu Jiuding
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By analyzing existing cross correlation between Anhui Transport Consulting and Kunwu Jiuding Investment, you can compare the effects of market volatilities on Anhui Transport and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Kunwu Jiuding.
Diversification Opportunities for Anhui Transport and Kunwu Jiuding
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Kunwu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of Anhui Transport i.e., Anhui Transport and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between Anhui Transport and Kunwu Jiuding
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.26 times more return on investment than Kunwu Jiuding. However, Anhui Transport Consulting is 3.77 times less risky than Kunwu Jiuding. It trades about -0.08 of its potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.04 per unit of risk. If you would invest 886.00 in Anhui Transport Consulting on November 3, 2024 and sell it today you would lose (15.00) from holding Anhui Transport Consulting or give up 1.69% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Kunwu Jiuding Investment
Performance |
| Timeline |
| Anhui Transport Cons |
| Kunwu Jiuding Investment |
Anhui Transport and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Kunwu Jiuding
The main advantage of trading using opposite Anhui Transport and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| Anhui Transport vs. Jinhe Biotechnology Co | Anhui Transport vs. Sunny Loan Top | Anhui Transport vs. Jiangsu Financial Leasing | Anhui Transport vs. Changchun BCHT Biotechnology |
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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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