Correlation Between Yantai North and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Yantai North Andre and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Yantai North 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 Yantai North with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Anhui Jianghuai.
Diversification Opportunities for Yantai North and Anhui Jianghuai
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Yantai and Anhui is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre 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 Yantai North 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 Yantai North Andre 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 Yantai North i.e., Yantai North and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Yantai North and Anhui Jianghuai
Assuming the 90 days trading horizon Yantai North is expected to generate 1.67 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Yantai North Andre is 1.47 times less risky than Anhui Jianghuai. It trades about 0.29 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,500 in Anhui Jianghuai Automobile on November 5, 2024 and sell it today you would earn a total of 589.00 from holding Anhui Jianghuai Automobile or generate 16.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yantai North Andre vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Yantai North Andre |
| Anhui Jianghuai Auto |
Yantai North and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Anhui Jianghuai
The main advantage of trading using opposite Yantai North and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North 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.| Yantai North vs. Bangyan Technology Co | Yantai North vs. Olympic Circuit Technology | Yantai North vs. Juneyao Airlines | Yantai North vs. UCloud Technology Co |
| Anhui Jianghuai vs. Air China Ltd | Anhui Jianghuai vs. Sino Platinum Metals Co | Anhui Jianghuai vs. Western Metal Materials | Anhui Jianghuai vs. Kontour Medical 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk |