Correlation Between Anhui Transport and Liuzhou Chemical
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By analyzing existing cross correlation between Anhui Transport Consulting and Liuzhou Chemical Industry, you can compare the effects of market volatilities on Anhui Transport and Liuzhou 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 Liuzhou Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Liuzhou Chemical.
Diversification Opportunities for Anhui Transport and Liuzhou Chemical
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Liuzhou is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Liuzhou Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liuzhou 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 Liuzhou Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liuzhou Chemical Industry has no effect on the direction of Anhui Transport i.e., Anhui Transport and Liuzhou Chemical go up and down completely randomly.
Pair Corralation between Anhui Transport and Liuzhou Chemical
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 1.09 times more return on investment than Liuzhou Chemical. However, Anhui Transport is 1.09 times more volatile than Liuzhou Chemical Industry. It trades about 0.03 of its potential returns per unit of risk. Liuzhou Chemical Industry is currently generating about 0.0 per unit of risk. If you would invest 762.00 in Anhui Transport Consulting on September 3, 2024 and sell it today you would earn a total of 221.00 from holding Anhui Transport Consulting or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Liuzhou Chemical Industry
Performance |
| Timeline |
| Anhui Transport Cons |
| Liuzhou Chemical Industry |
Anhui Transport and Liuzhou Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Liuzhou Chemical
The main advantage of trading using opposite Anhui Transport and Liuzhou Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Liuzhou 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 Liuzhou Chemical will offset losses from the drop in Liuzhou Chemical's long position.| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology Co |
| Liuzhou Chemical vs. Ye Chiu Metal | Liuzhou Chemical vs. Xinjiang Baodi Mining | Liuzhou Chemical vs. Anhui Transport Consulting | Liuzhou Chemical vs. Hengli Industrial Development |
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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