Correlation Between Anhui Transport and Industrial Securities
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By analyzing existing cross correlation between Anhui Transport Consulting and Industrial Securities Co, you can compare the effects of market volatilities on Anhui Transport and Industrial Securities 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 Industrial Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Industrial Securities.
Diversification Opportunities for Anhui Transport and Industrial Securities
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Industrial is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Industrial Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial Securities 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 Industrial Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial Securities has no effect on the direction of Anhui Transport i.e., Anhui Transport and Industrial Securities go up and down completely randomly.
Pair Corralation between Anhui Transport and Industrial Securities
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to generate 1.49 times more return on investment than Industrial Securities. However, Anhui Transport is 1.49 times more volatile than Industrial Securities Co. It trades about 0.03 of its potential returns per unit of risk. Industrial Securities Co is currently generating about 0.03 per unit of risk. If you would invest 885.00 in Anhui Transport Consulting on September 3, 2024 and sell it today you would earn a total of 97.00 from holding Anhui Transport Consulting or generate 10.96% 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. Industrial Securities Co
Performance |
| Timeline |
| Anhui Transport Cons |
| Industrial Securities |
Anhui Transport and Industrial Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Industrial Securities
The main advantage of trading using opposite Anhui Transport and Industrial Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Industrial Securities 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 Industrial Securities will offset losses from the drop in Industrial Securities' 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 |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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