Correlation Between Eastern Communications and Anhui Jinhe
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By analyzing existing cross correlation between Eastern Communications Co and Anhui Jinhe Industrial, you can compare the effects of market volatilities on Eastern Communications and Anhui Jinhe 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 Eastern Communications with a short position of Anhui Jinhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eastern Communications and Anhui Jinhe.
Diversification Opportunities for Eastern Communications and Anhui Jinhe
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Eastern and Anhui is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Eastern Communications Co and Anhui Jinhe Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jinhe Industrial and Eastern Communications 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 Eastern Communications Co are associated (or correlated) with Anhui Jinhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jinhe Industrial has no effect on the direction of Eastern Communications i.e., Eastern Communications and Anhui Jinhe go up and down completely randomly.
Pair Corralation between Eastern Communications and Anhui Jinhe
Assuming the 90 days trading horizon Eastern Communications is expected to generate 2.45 times less return on investment than Anhui Jinhe. In addition to that, Eastern Communications is 1.19 times more volatile than Anhui Jinhe Industrial. It trades about 0.08 of its total potential returns per unit of risk. Anhui Jinhe Industrial is currently generating about 0.22 per unit of volatility. If you would invest 2,255 in Anhui Jinhe Industrial on November 3, 2024 and sell it today you would earn a total of 160.00 from holding Anhui Jinhe Industrial or generate 7.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eastern Communications Co vs. Anhui Jinhe Industrial
Performance |
| Timeline |
| Eastern Communications |
| Anhui Jinhe Industrial |
Eastern Communications and Anhui Jinhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eastern Communications and Anhui Jinhe
The main advantage of trading using opposite Eastern Communications and Anhui Jinhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eastern Communications position performs unexpectedly, Anhui Jinhe 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 Jinhe will offset losses from the drop in Anhui Jinhe's long position.| Eastern Communications vs. Mingchen Health Co | Eastern Communications vs. Shenzhen Glory Medical | Eastern Communications vs. Winner Medical Co | Eastern Communications vs. De Rucci Healthy |
| Anhui Jinhe vs. Zijin Mining Group | Anhui Jinhe vs. Wanhua Chemical Group | Anhui Jinhe vs. Baoshan Iron Steel | Anhui Jinhe vs. Shandong Gold 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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