Correlation Between Anhui Transport and Cultural Investment
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By analyzing existing cross correlation between Anhui Transport Consulting and Cultural Investment Holdings, you can compare the effects of market volatilities on Anhui Transport and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Cultural Investment.
Diversification Opportunities for Anhui Transport and Cultural Investment
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Cultural is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Anhui Transport i.e., Anhui Transport and Cultural Investment go up and down completely randomly.
Pair Corralation between Anhui Transport and Cultural Investment
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.61 times more return on investment than Cultural Investment. However, Anhui Transport Consulting is 1.65 times less risky than Cultural Investment. It trades about 0.03 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.0 per unit of risk. If you would invest 903.00 in Anhui Transport Consulting on September 2, 2024 and sell it today you would earn a total of 80.00 from holding Anhui Transport Consulting or generate 8.86% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Anhui Transport Cons |
| Cultural Investment |
Anhui Transport and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Cultural Investment
The main advantage of trading using opposite Anhui Transport and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
| Cultural Investment vs. China Minmetals Rare | Cultural Investment vs. Chengtun Mining Group | Cultural Investment vs. Qinghaihuading Industrial Co | Cultural Investment vs. China Life Insurance |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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