Correlation Between Yantai North and Anhui Xinhua
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By analyzing existing cross correlation between Yantai North Andre and Anhui Xinhua Media, you can compare the effects of market volatilities on Yantai North and Anhui Xinhua 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 Xinhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yantai North and Anhui Xinhua.
Diversification Opportunities for Yantai North and Anhui Xinhua
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Yantai and Anhui is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Yantai North Andre and Anhui Xinhua Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Xinhua Media 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 Xinhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Xinhua Media has no effect on the direction of Yantai North i.e., Yantai North and Anhui Xinhua go up and down completely randomly.
Pair Corralation between Yantai North and Anhui Xinhua
Assuming the 90 days trading horizon Yantai North is expected to generate 1.04 times less return on investment than Anhui Xinhua. But when comparing it to its historical volatility, Yantai North Andre is 1.84 times less risky than Anhui Xinhua. It trades about 0.21 of its potential returns per unit of risk. Anhui Xinhua Media is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 678.00 in Anhui Xinhua Media on November 28, 2024 and sell it today you would earn a total of 36.00 from holding Anhui Xinhua Media or generate 5.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.12% |
| Values | Daily Returns |
Yantai North Andre vs. Anhui Xinhua Media
Performance |
| Timeline |
| Yantai North Andre |
| Anhui Xinhua Media |
Yantai North and Anhui Xinhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yantai North and Anhui Xinhua
The main advantage of trading using opposite Yantai North and Anhui Xinhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yantai North position performs unexpectedly, Anhui Xinhua 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 Xinhua will offset losses from the drop in Anhui Xinhua's long position.| Yantai North vs. Shenzhen Zqgame | Yantai North vs. Bohai Leasing Co | Yantai North vs. Chongqing Road Bridge | Yantai North vs. RoadMain T Co |
| Anhui Xinhua vs. Caihong Display Devices | Anhui Xinhua vs. Goldlok Toys Holdings | Anhui Xinhua vs. Shenzhen Zqgame | Anhui Xinhua vs. JCHX Mining Management |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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