Correlation Between Anhui Transport and Beijing Baolande
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By analyzing existing cross correlation between Anhui Transport Consulting and Beijing Baolande Software, you can compare the effects of market volatilities on Anhui Transport and Beijing Baolande 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 Beijing Baolande. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Beijing Baolande.
Diversification Opportunities for Anhui Transport and Beijing Baolande
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Beijing Baolande Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Baolande Software 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 Beijing Baolande. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Baolande Software has no effect on the direction of Anhui Transport i.e., Anhui Transport and Beijing Baolande go up and down completely randomly.
Pair Corralation between Anhui Transport and Beijing Baolande
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Beijing Baolande. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 3.49 times less risky than Beijing Baolande. The stock trades about -0.23 of its potential returns per unit of risk. The Beijing Baolande Software is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 2,870 in Beijing Baolande Software on October 30, 2024 and sell it today you would lose (158.00) from holding Beijing Baolande Software or give up 5.51% 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. Beijing Baolande Software
Performance |
| Timeline |
| Anhui Transport Cons |
| Beijing Baolande Software |
Anhui Transport and Beijing Baolande Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Beijing Baolande
The main advantage of trading using opposite Anhui Transport and Beijing Baolande positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Beijing Baolande 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 Beijing Baolande will offset losses from the drop in Beijing Baolande's long position.| Anhui Transport vs. Nanjing OLO Home | Anhui Transport vs. Zoy Home Furnishing | Anhui Transport vs. Fiberhome Telecommunication Technologies | Anhui Transport vs. Jiangsu Yanghe Brewery |
| Beijing Baolande vs. Bank of China | Beijing Baolande vs. Kweichow Moutai Co | Beijing Baolande vs. PetroChina Co Ltd | Beijing Baolande vs. Bank of Communications |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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