Correlation Between Anhui Transport and Changjiang Jinggong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Changjiang Jinggong Steel, you can compare the effects of market volatilities on Anhui Transport and Changjiang Jinggong 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 Changjiang Jinggong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Changjiang Jinggong.
Diversification Opportunities for Anhui Transport and Changjiang Jinggong
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Changjiang is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Changjiang Jinggong Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changjiang Jinggong 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 Changjiang Jinggong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changjiang Jinggong Steel has no effect on the direction of Anhui Transport i.e., Anhui Transport and Changjiang Jinggong go up and down completely randomly.
Pair Corralation between Anhui Transport and Changjiang Jinggong
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Changjiang Jinggong. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 1.19 times less risky than Changjiang Jinggong. The stock trades about -0.02 of its potential returns per unit of risk. The Changjiang Jinggong Steel is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 293.00 in Changjiang Jinggong Steel on November 7, 2024 and sell it today you would earn a total of 1.00 from holding Changjiang Jinggong Steel or generate 0.34% 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. Changjiang Jinggong Steel
Performance |
| Timeline |
| Anhui Transport Cons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Changjiang Jinggong Steel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anhui Transport and Changjiang Jinggong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Changjiang Jinggong
The main advantage of trading using opposite Anhui Transport and Changjiang Jinggong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Changjiang Jinggong 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 Changjiang Jinggong will offset losses from the drop in Changjiang Jinggong's long position.The idea behind Anhui Transport Consulting and Changjiang Jinggong Steel pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stocks Directory Find actively traded stocks across global markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |