Correlation Between OBiO Technology and Anhui Transport
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By analyzing existing cross correlation between OBiO Technology Corp and Anhui Transport Consulting, you can compare the effects of market volatilities on OBiO Technology and Anhui Transport 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 OBiO Technology with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of OBiO Technology and Anhui Transport.
Diversification Opportunities for OBiO Technology and Anhui Transport
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between OBiO and Anhui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding OBiO Technology Corp and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons and OBiO Technology 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 OBiO Technology Corp are associated (or correlated) with Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of OBiO Technology i.e., OBiO Technology and Anhui Transport go up and down completely randomly.
Pair Corralation between OBiO Technology and Anhui Transport
Assuming the 90 days trading horizon OBiO Technology Corp is expected to generate 1.72 times more return on investment than Anhui Transport. However, OBiO Technology is 1.72 times more volatile than Anhui Transport Consulting. It trades about 0.13 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.15 per unit of risk. If you would invest 412.00 in OBiO Technology Corp on September 3, 2024 and sell it today you would earn a total of 140.00 from holding OBiO Technology Corp or generate 33.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
OBiO Technology Corp vs. Anhui Transport Consulting
Performance |
| Timeline |
| OBiO Technology Corp |
| Anhui Transport Cons |
OBiO Technology and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with OBiO Technology and Anhui Transport
The main advantage of trading using opposite OBiO Technology and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if OBiO Technology position performs unexpectedly, Anhui Transport 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 Transport will offset losses from the drop in Anhui Transport's long position.| OBiO Technology vs. Gan Yuan Foods | OBiO Technology vs. Jiahe Foods Industry | OBiO Technology vs. JuneYao Dairy Co | OBiO Technology vs. Tongyu Communication |
| Anhui Transport vs. Cultural Investment Holdings | Anhui Transport vs. Gome Telecom Equipment | Anhui Transport vs. Bus Online Co | Anhui Transport vs. Holitech Technology 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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