Correlation Between Threes Company and Anhui Jianghuai
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By analyzing existing cross correlation between Threes Company Media and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Threes Company 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 Threes Company with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Threes Company and Anhui Jianghuai.
Diversification Opportunities for Threes Company and Anhui Jianghuai
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Threes and Anhui is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Threes Company Media 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 Threes Company 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 Threes Company Media 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 Threes Company i.e., Threes Company and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Threes Company and Anhui Jianghuai
Assuming the 90 days trading horizon Threes Company Media is expected to under-perform the Anhui Jianghuai. In addition to that, Threes Company is 1.4 times more volatile than Anhui Jianghuai Automobile. It trades about -0.16 of its total potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.02 per unit of volatility. If you would invest 3,800 in Anhui Jianghuai Automobile on October 19, 2024 and sell it today you would earn a total of 9.00 from holding Anhui Jianghuai Automobile or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Threes Company Media vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Threes Company |
| Anhui Jianghuai Auto |
Threes Company and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Threes Company and Anhui Jianghuai
The main advantage of trading using opposite Threes Company and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Threes Company 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.| Threes Company vs. Shengda Mining Co | Threes Company vs. JCHX Mining Management | Threes Company vs. Guocheng Mining Co | Threes Company vs. Chongqing Brewery Co |
| Anhui Jianghuai vs. Threes Company Media | Anhui Jianghuai vs. Guangzhou KingTeller Technology | Anhui Jianghuai vs. Digiwin Software Co | Anhui Jianghuai vs. Olympic Circuit Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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