Correlation Between Anhui Transport and Nanning Chemical
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By analyzing existing cross correlation between Anhui Transport Consulting and Nanning Chemical Industry, you can compare the effects of market volatilities on Anhui Transport and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Nanning Chemical.
Diversification Opportunities for Anhui Transport and Nanning Chemical
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Nanning is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Anhui Transport i.e., Anhui Transport and Nanning Chemical go up and down completely randomly.
Pair Corralation between Anhui Transport and Nanning Chemical
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.32 times less return on investment than Nanning Chemical. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.15 times less risky than Nanning Chemical. It trades about 0.02 of its potential returns per unit of risk. Nanning Chemical Industry is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,431 in Nanning Chemical Industry on October 11, 2024 and sell it today you would earn a total of 285.00 from holding Nanning Chemical Industry or generate 19.92% 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. Nanning Chemical Industry
Performance |
| Timeline |
| Anhui Transport Cons |
| Nanning Chemical Industry |
Anhui Transport and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Nanning Chemical
The main advantage of trading using opposite Anhui Transport and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical's long position.| Anhui Transport vs. Allwin Telecommunication Co | Anhui Transport vs. Nanjing Putian Telecommunications | Anhui Transport vs. Shandong Polymer Biochemicals | Anhui Transport vs. Jinsanjiang Silicon Material |
| Nanning Chemical vs. Chengdu Xinzhu RoadBridge | Nanning Chemical vs. Shanghai Newtouch Software | Nanning Chemical vs. Anhui Transport Consulting | Nanning Chemical vs. Hainan Haiqi Transportation |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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