Correlation Between Anhui Transport and China Marine
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By analyzing existing cross correlation between Anhui Transport Consulting and China Marine Information, you can compare the effects of market volatilities on Anhui Transport and China Marine 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 China Marine. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and China Marine.
Diversification Opportunities for Anhui Transport and China Marine
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and China is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and China Marine Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Marine Information 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 China Marine. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Marine Information has no effect on the direction of Anhui Transport i.e., Anhui Transport and China Marine go up and down completely randomly.
Pair Corralation between Anhui Transport and China Marine
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 1.01 times more return on investment than China Marine. However, Anhui Transport is 1.01 times more volatile than China Marine Information. It trades about 0.03 of its potential returns per unit of risk. China Marine Information is currently generating about 0.03 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. China Marine Information
Performance |
| Timeline |
| Anhui Transport Cons |
| China Marine Information |
Anhui Transport and China Marine Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and China Marine
The main advantage of trading using opposite Anhui Transport and China Marine positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, China Marine 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 China Marine will offset losses from the drop in China Marine'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 |
| China Marine vs. Pengxin International Mining | China Marine vs. Zhejiang Yayi Metal | China Marine vs. Anhui Transport Consulting | China Marine vs. Western Metal Materials |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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