Correlation Between Nanya New and Anhui Jianghuai
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By analyzing existing cross correlation between Nanya New Material and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Nanya New 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 Nanya New with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Nanya New and Anhui Jianghuai.
Diversification Opportunities for Nanya New and Anhui Jianghuai
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Nanya and Anhui is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Nanya New Material 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 Nanya New 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 Nanya New Material 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 Nanya New i.e., Nanya New and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Nanya New and Anhui Jianghuai
Assuming the 90 days trading horizon Nanya New Material is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Nanya New Material is 2.0 times less risky than Anhui Jianghuai. The stock trades about -0.25 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 4,432 in Anhui Jianghuai Automobile on September 14, 2024 and sell it today you would lose (502.00) from holding Anhui Jianghuai Automobile or give up 11.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Nanya New Material vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Nanya New Material |
| Anhui Jianghuai Auto |
Nanya New and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Nanya New and Anhui Jianghuai
The main advantage of trading using opposite Nanya New and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Nanya New 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.| Nanya New vs. Sunwave Communications Co | Nanya New vs. GRINM Semiconductor Materials | Nanya New vs. Beijing Yanjing Brewery | Nanya New vs. Xiangyang Automobile Bearing |
| Anhui Jianghuai vs. Nanya New Material | Anhui Jianghuai vs. Changchun Faway Automobile | Anhui Jianghuai vs. Ningbo Fangzheng Automobile | Anhui Jianghuai vs. Cicc Fund 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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