Correlation Between Jadard Technology and Anhui Jianghuai
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By analyzing existing cross correlation between Jadard Technology A and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Jadard Technology 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 Jadard Technology with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jadard Technology and Anhui Jianghuai.
Diversification Opportunities for Jadard Technology and Anhui Jianghuai
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jadard and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jadard Technology A 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 Jadard 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 Jadard Technology A 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 Jadard Technology i.e., Jadard Technology and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Jadard Technology and Anhui Jianghuai
Assuming the 90 days trading horizon Jadard Technology A is expected to generate 0.66 times more return on investment than Anhui Jianghuai. However, Jadard Technology A is 1.51 times less risky than Anhui Jianghuai. It trades about 0.01 of its potential returns per unit of risk. Anhui Jianghuai Automobile is currently generating about -0.15 per unit of risk. If you would invest 2,497 in Jadard Technology A on September 13, 2024 and sell it today you would lose (5.00) from holding Jadard Technology A or give up 0.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Jadard Technology A vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Jadard Technology |
| Anhui Jianghuai Auto |
Jadard Technology and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jadard Technology and Anhui Jianghuai
The main advantage of trading using opposite Jadard Technology and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jadard Technology 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.| Jadard Technology vs. Dr Peng Telecom | Jadard Technology vs. Zhengzhou Coal Mining | Jadard Technology vs. Shenzhen Kexin Communication | Jadard Technology vs. Guangdong Silvere Sci |
| Anhui Jianghuai vs. Beijing Sanyuan Foods | Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Dazhong Transportation Group | Anhui Jianghuai vs. Shandong Huifa Foodstuff |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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