Correlation Between Shanghai CEO and Anhui Jianghuai
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By analyzing existing cross correlation between Shanghai CEO Environmental and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Shanghai CEO 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 Shanghai CEO with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and Anhui Jianghuai.
Diversification Opportunities for Shanghai CEO and Anhui Jianghuai
0.12 | Correlation Coefficient |
Average diversification
The 3 months correlation between Shanghai and Anhui is 0.12. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental 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 Shanghai CEO 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 Shanghai CEO Environmental 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 Shanghai CEO i.e., Shanghai CEO and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Shanghai CEO and Anhui Jianghuai
Assuming the 90 days trading horizon Shanghai CEO is expected to generate 19.31 times less return on investment than Anhui Jianghuai. But when comparing it to its historical volatility, Shanghai CEO Environmental is 1.47 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 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,623 in Anhui Jianghuai Automobile on November 1, 2024 and sell it today you would earn a total of 2,466 from holding Anhui Jianghuai Automobile or generate 151.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai CEO Environmental vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Shanghai CEO Environ |
| Anhui Jianghuai Auto |
Shanghai CEO and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai CEO and Anhui Jianghuai
The main advantage of trading using opposite Shanghai CEO and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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.| Shanghai CEO vs. China Petroleum Chemical | Shanghai CEO vs. PetroChina Co Ltd | Shanghai CEO vs. China State Construction | Shanghai CEO vs. China Railway Group |
| Anhui Jianghuai vs. Xiamen Goldenhome Co | Anhui Jianghuai vs. Ningbo Fujia Industrial | Anhui Jianghuai vs. UE Furniture Co | Anhui Jianghuai vs. Tibet Huayu Mining |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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