Correlation Between Anhui Transport and Heilongjiang Transport
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By analyzing existing cross correlation between Anhui Transport Consulting and Heilongjiang Transport Development, you can compare the effects of market volatilities on Anhui Transport and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Heilongjiang Transport.
Diversification Opportunities for Anhui Transport and Heilongjiang Transport
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Heilongjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Anhui Transport i.e., Anhui Transport and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Anhui Transport and Heilongjiang Transport
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 0.69 times more return on investment than Heilongjiang Transport. However, Anhui Transport Consulting is 1.44 times less risky than Heilongjiang Transport. It trades about -0.17 of its potential returns per unit of risk. Heilongjiang Transport Development is currently generating about -0.15 per unit of risk. If you would invest 908.00 in Anhui Transport Consulting on October 26, 2024 and sell it today you would lose (42.00) from holding Anhui Transport Consulting or give up 4.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Heilongjiang Transport Develop
Performance |
| Timeline |
| Anhui Transport Cons |
| Heilongjiang Transport |
Anhui Transport and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Heilongjiang Transport
The main advantage of trading using opposite Anhui Transport and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport's long position.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. PetroChina Co Ltd |
| Heilongjiang Transport vs. PetroChina Co Ltd | Heilongjiang Transport vs. China Mobile Limited | Heilongjiang Transport vs. CNOOC Limited | Heilongjiang Transport vs. Ping An 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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