Correlation Between Anhui Transport and Dongxing Sec
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Dongxing Sec Co, you can compare the effects of market volatilities on Anhui Transport and Dongxing Sec 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 Dongxing Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Dongxing Sec.
Diversification Opportunities for Anhui Transport and Dongxing Sec
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Dongxing is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Dongxing Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongxing Sec 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 Dongxing Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongxing Sec has no effect on the direction of Anhui Transport i.e., Anhui Transport and Dongxing Sec go up and down completely randomly.
Pair Corralation between Anhui Transport and Dongxing Sec
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Dongxing Sec. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 1.62 times less risky than Dongxing Sec. The stock trades about -0.43 of its potential returns per unit of risk. The Dongxing Sec Co is currently generating about -0.18 of returns per unit of risk over similar time horizon. If you would invest 1,193 in Dongxing Sec Co on October 12, 2024 and sell it today you would lose (127.00) from holding Dongxing Sec Co or give up 10.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Transport Consulting vs. Dongxing Sec Co
Performance |
| Timeline |
| Anhui Transport Cons |
| Dongxing Sec |
Anhui Transport and Dongxing Sec Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Dongxing Sec
The main advantage of trading using opposite Anhui Transport and Dongxing Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Dongxing Sec 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 Dongxing Sec will offset losses from the drop in Dongxing Sec's long position.| Anhui Transport vs. Emdoor Information Co | Anhui Transport vs. Do Fluoride Chemicals Co | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Sharetronic Data Technology |
| Dongxing Sec vs. Chengdu Spaceon Electronics | Dongxing Sec vs. Anhui Transport Consulting | Dongxing Sec vs. JCHX Mining Management | Dongxing Sec vs. Chongqing Road Bridge |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |