Correlation Between Anhui Transport and Changchun Faway
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By analyzing existing cross correlation between Anhui Transport Consulting and Changchun Faway Automobile, you can compare the effects of market volatilities on Anhui Transport and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Changchun Faway.
Diversification Opportunities for Anhui Transport and Changchun Faway
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Changchun is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Anhui Transport i.e., Anhui Transport and Changchun Faway go up and down completely randomly.
Pair Corralation between Anhui Transport and Changchun Faway
Assuming the 90 days trading horizon Anhui Transport is expected to generate 1.28 times less return on investment than Changchun Faway. In addition to that, Anhui Transport is 1.0 times more volatile than Changchun Faway Automobile. It trades about 0.04 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.05 per unit of volatility. If you would invest 951.00 in Changchun Faway Automobile on August 28, 2024 and sell it today you would earn a total of 17.00 from holding Changchun Faway Automobile or generate 1.79% 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. Changchun Faway Automobile
Performance |
| Timeline |
| Anhui Transport Cons |
| Changchun Faway Auto |
Anhui Transport and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Changchun Faway
The main advantage of trading using opposite Anhui Transport and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
| Changchun Faway vs. Chinese Universe Publishing | Changchun Faway vs. Ningbo Jianan Electronics | Changchun Faway vs. Epoxy Base Electronic | Changchun Faway vs. Changjiang Publishing Media |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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