Correlation Between Anhui Transport and Chahua Modern
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By analyzing existing cross correlation between Anhui Transport Consulting and Chahua Modern Housewares, you can compare the effects of market volatilities on Anhui Transport and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Chahua Modern.
Diversification Opportunities for Anhui Transport and Chahua Modern
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Chahua is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Anhui Transport i.e., Anhui Transport and Chahua Modern go up and down completely randomly.
Pair Corralation between Anhui Transport and Chahua Modern
Assuming the 90 days trading horizon Anhui Transport is expected to generate 12.38 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Anhui Transport Consulting is 1.92 times less risky than Chahua Modern. It trades about 0.04 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 1,842 in Chahua Modern Housewares on August 28, 2024 and sell it today you would earn a total of 429.00 from holding Chahua Modern Housewares or generate 23.29% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Anhui Transport Cons |
| Chahua Modern Housewares |
Anhui Transport and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Chahua Modern
The main advantage of trading using opposite Anhui Transport and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. China Construction Bank |
| Chahua Modern vs. Lutian Machinery Co | Chahua Modern vs. China Longyuan Power | Chahua Modern vs. Changshu Tongrun Auto | Chahua Modern vs. PetroChina Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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