Correlation Between Anhui Transport and Shandong Sinoglory
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Transport Consulting and Shandong Sinoglory Health, you can compare the effects of market volatilities on Anhui Transport and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Shandong Sinoglory.
Diversification Opportunities for Anhui Transport and Shandong Sinoglory
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Shandong is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Anhui Transport i.e., Anhui Transport and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Anhui Transport and Shandong Sinoglory
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Shandong Sinoglory. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 1.66 times less risky than Shandong Sinoglory. The stock trades about -0.02 of its potential returns per unit of risk. The Shandong Sinoglory Health is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,105 in Shandong Sinoglory Health on November 7, 2024 and sell it today you would earn a total of 93.00 from holding Shandong Sinoglory Health or generate 8.42% 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. Shandong Sinoglory Health
Performance |
| Timeline |
| Anhui Transport Cons |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shandong Sinoglory Health |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anhui Transport and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Shandong Sinoglory
The main advantage of trading using opposite Anhui Transport and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.The idea behind Anhui Transport Consulting and Shandong Sinoglory Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
Other Complementary Tools
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |