Correlation Between Anhui Jianghuai and Huaxi Securities
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By analyzing existing cross correlation between Anhui Jianghuai Automobile and Huaxi Securities Co, you can compare the effects of market volatilities on Anhui Jianghuai and Huaxi Securities 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 Anhui Jianghuai with a short position of Huaxi Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Huaxi Securities.
Diversification Opportunities for Anhui Jianghuai and Huaxi Securities
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Huaxi is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Huaxi Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxi Securities and Anhui Jianghuai 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 Anhui Jianghuai Automobile are associated (or correlated) with Huaxi Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxi Securities has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Huaxi Securities go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Huaxi Securities
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to generate 1.7 times more return on investment than Huaxi Securities. However, Anhui Jianghuai is 1.7 times more volatile than Huaxi Securities Co. It trades about 0.01 of its potential returns per unit of risk. Huaxi Securities Co is currently generating about -0.31 per unit of risk. If you would invest 3,504 in Anhui Jianghuai Automobile on October 9, 2024 and sell it today you would lose (4.00) from holding Anhui Jianghuai Automobile or give up 0.11% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Jianghuai Automobile vs. Huaxi Securities Co
Performance |
Timeline |
Anhui Jianghuai Auto |
Huaxi Securities |
Anhui Jianghuai and Huaxi Securities Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Jianghuai and Huaxi Securities
The main advantage of trading using opposite Anhui Jianghuai and Huaxi Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Huaxi Securities 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 Huaxi Securities will offset losses from the drop in Huaxi Securities' long position.Anhui Jianghuai vs. Chengdu Kanghua Biological | Anhui Jianghuai vs. Beijing Wantai Biological | Anhui Jianghuai vs. Suzhou Novoprotein Scientific | Anhui Jianghuai vs. Aluminum Corp of |
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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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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