Correlation Between Beijing Wantai and Anhui Jianghuai
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By analyzing existing cross correlation between Beijing Wantai Biological and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Beijing Wantai and Anhui Jianghuai 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 Beijing Wantai with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Wantai and Anhui Jianghuai.
Diversification Opportunities for Beijing Wantai and Anhui Jianghuai
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Beijing and Anhui is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Wantai Biological and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Beijing Wantai 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 Beijing Wantai Biological are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Beijing Wantai i.e., Beijing Wantai and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Beijing Wantai and Anhui Jianghuai
Assuming the 90 days trading horizon Beijing Wantai Biological is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Wantai Biological is 1.47 times less risky than Anhui Jianghuai. The stock trades about -0.2 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,866 in Anhui Jianghuai Automobile on October 25, 2024 and sell it today you would earn a total of 233.00 from holding Anhui Jianghuai Automobile or generate 6.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Wantai Biological vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Beijing Wantai Biological |
| Anhui Jianghuai Auto |
Beijing Wantai and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Wantai and Anhui Jianghuai
The main advantage of trading using opposite Beijing Wantai and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Wantai position performs unexpectedly, Anhui Jianghuai 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 Anhui Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Beijing Wantai vs. Zotye Automobile Co | Beijing Wantai vs. Quectel Wireless Solutions | Beijing Wantai vs. Xiamen Goldenhome Co | Beijing Wantai vs. Qumei Furniture Group |
| Anhui Jianghuai vs. PetroChina Co Ltd | Anhui Jianghuai vs. Gansu Jiu Steel | Anhui Jianghuai vs. Ming Yang Smart | Anhui Jianghuai vs. Aba Chemicals Corp |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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