Correlation Between Shenzhen Fortune and Anhui Transport
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By analyzing existing cross correlation between Shenzhen Fortune Trend and Anhui Transport Consulting, you can compare the effects of market volatilities on Shenzhen Fortune 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 Shenzhen Fortune with a short position of Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Fortune and Anhui Transport.
Diversification Opportunities for Shenzhen Fortune and Anhui Transport
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Anhui is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Fortune Trend 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 Shenzhen Fortune 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 Shenzhen Fortune Trend 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 Shenzhen Fortune i.e., Shenzhen Fortune and Anhui Transport go up and down completely randomly.
Pair Corralation between Shenzhen Fortune and Anhui Transport
Assuming the 90 days trading horizon Shenzhen Fortune Trend is expected to under-perform the Anhui Transport. In addition to that, Shenzhen Fortune is 2.37 times more volatile than Anhui Transport Consulting. It trades about -0.03 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.24 per unit of volatility. If you would invest 873.00 in Anhui Transport Consulting on December 4, 2024 and sell it today you would earn a total of 51.00 from holding Anhui Transport Consulting or generate 5.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Fortune Trend vs. Anhui Transport Consulting
Performance |
| Timeline |
| Shenzhen Fortune Trend |
| Anhui Transport Cons |
Shenzhen Fortune and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Fortune and Anhui Transport
The main advantage of trading using opposite Shenzhen Fortune and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Fortune 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.| Shenzhen Fortune vs. Bomesc Offshore Engineering | Shenzhen Fortune vs. Zhejiang Construction Investment | Shenzhen Fortune vs. Ningbo Tip Rubber | Shenzhen Fortune vs. Fuda Alloy Materials |
| Anhui Transport vs. Youyou Foods Co | Anhui Transport vs. Hubei Tech Semiconductors | Anhui Transport vs. Shanghai Ziyan Foods | Anhui Transport vs. Guilin Seamild Foods |
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 CEOs Directory module to screen CEOs from public companies around the world.
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