Correlation Between Anhui Transport and Anhui Jianghuai
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By analyzing existing cross correlation between Anhui Transport Consulting and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Anhui Transport and Anhui Jianghuai 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 Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Anhui Jianghuai.
Diversification Opportunities for Anhui Transport and Anhui Jianghuai
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Anhui is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto 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 Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Anhui Transport i.e., Anhui Transport and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Anhui Transport and Anhui Jianghuai
Assuming the 90 days trading horizon Anhui Transport is expected to generate 3.96 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.34 times less risky than Anhui Jianghuai. It trades about 0.03 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,446 in Anhui Jianghuai Automobile on October 31, 2024 and sell it today you would earn a total of 2,643 from holding Anhui Jianghuai Automobile or generate 182.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Anhui Transport Cons |
| Anhui Jianghuai Auto |
Anhui Transport and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Anhui Jianghuai
The main advantage of trading using opposite Anhui Transport and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Anhui Transport vs. Wintao Communications Co | Anhui Transport vs. Allmed Medical Products | Anhui Transport vs. Sinomach Automobile Co | Anhui Transport vs. Nanjing Putian Telecommunications |
| Anhui Jianghuai vs. Shandong Intco Medical | Anhui Jianghuai vs. Bus Online Co | Anhui Jianghuai vs. Cicc Fund Management | Anhui Jianghuai vs. Shanghai CEO Environmental |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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