Correlation Between Anhui Transport and Gansu Jiu
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By analyzing existing cross correlation between Anhui Transport Consulting and Gansu Jiu Steel, you can compare the effects of market volatilities on Anhui Transport and Gansu Jiu 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 Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Gansu Jiu.
Diversification Opportunities for Anhui Transport and Gansu Jiu
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Gansu is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel 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 Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Anhui Transport i.e., Anhui Transport and Gansu Jiu go up and down completely randomly.
Pair Corralation between Anhui Transport and Gansu Jiu
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.85 times more return on investment than Gansu Jiu. However, Anhui Transport Consulting is 1.18 times less risky than Gansu Jiu. It trades about -0.43 of its potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.59 per unit of risk. If you would invest 973.00 in Anhui Transport Consulting on October 15, 2024 and sell it today you would lose (123.00) from holding Anhui Transport Consulting or give up 12.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Gansu Jiu Steel
Performance |
| Timeline |
| Anhui Transport Cons |
| Gansu Jiu Steel |
Anhui Transport and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Gansu Jiu
The main advantage of trading using opposite Anhui Transport and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu'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 |
| Gansu Jiu vs. Xinjiang Baodi Mining | Gansu Jiu vs. Ningbo Jintian Copper | Gansu Jiu vs. Kangxin New Materials | Gansu Jiu vs. Chengtun Mining Group |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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