Correlation Between Anhui Transport and Jiangsu GDK
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By analyzing existing cross correlation between Anhui Transport Consulting and Jiangsu GDK Biotechnology, you can compare the effects of market volatilities on Anhui Transport and Jiangsu GDK 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 Jiangsu GDK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and Jiangsu GDK.
Diversification Opportunities for Anhui Transport and Jiangsu GDK
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Jiangsu is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and Jiangsu GDK Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu GDK Biotechnology 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 Jiangsu GDK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu GDK Biotechnology has no effect on the direction of Anhui Transport i.e., Anhui Transport and Jiangsu GDK go up and down completely randomly.
Pair Corralation between Anhui Transport and Jiangsu GDK
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the Jiangsu GDK. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Transport Consulting is 1.43 times less risky than Jiangsu GDK. The stock trades about -0.02 of its potential returns per unit of risk. The Jiangsu GDK Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,565 in Jiangsu GDK Biotechnology on September 12, 2024 and sell it today you would earn a total of 16.00 from holding Jiangsu GDK Biotechnology or generate 1.02% 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. Jiangsu GDK Biotechnology
Performance |
| Timeline |
| Anhui Transport Cons |
| Jiangsu GDK Biotechnology |
Anhui Transport and Jiangsu GDK Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Transport and Jiangsu GDK
The main advantage of trading using opposite Anhui Transport and Jiangsu GDK positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, Jiangsu GDK 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 Jiangsu GDK will offset losses from the drop in Jiangsu GDK's long position.| Anhui Transport vs. Agricultural Bank of | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. Bank of China | Anhui Transport vs. PetroChina Co Ltd |
| Jiangsu GDK vs. Yunnan Xiyi Industrial | Jiangsu GDK vs. Sichuan Fulin Transportation | Jiangsu GDK vs. Anhui Transport Consulting | Jiangsu GDK vs. Lonkey Industrial 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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