Correlation Between Anhui Transport and SSAW Hotels
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By analyzing existing cross correlation between Anhui Transport Consulting and SSAW Hotels Resorts, you can compare the effects of market volatilities on Anhui Transport and SSAW Hotels 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 Transport with a short position of SSAW Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and SSAW Hotels.
Diversification Opportunities for Anhui Transport and SSAW Hotels
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and SSAW is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and SSAW Hotels Resorts in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SSAW Hotels Resorts and Anhui Transport 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 Transport Consulting are associated (or correlated) with SSAW Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SSAW Hotels Resorts has no effect on the direction of Anhui Transport i.e., Anhui Transport and SSAW Hotels go up and down completely randomly.
Pair Corralation between Anhui Transport and SSAW Hotels
Assuming the 90 days trading horizon Anhui Transport is expected to generate 6.22 times less return on investment than SSAW Hotels. But when comparing it to its historical volatility, Anhui Transport Consulting is 2.09 times less risky than SSAW Hotels. It trades about 0.01 of its potential returns per unit of risk. SSAW Hotels Resorts is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,938 in SSAW Hotels Resorts on October 11, 2024 and sell it today you would earn a total of 9.00 from holding SSAW Hotels Resorts or generate 0.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Transport Consulting vs. SSAW Hotels Resorts
Performance |
Timeline |
Anhui Transport Cons |
SSAW Hotels Resorts |
Anhui Transport and SSAW Hotels Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Transport and SSAW Hotels
The main advantage of trading using opposite Anhui Transport and SSAW Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport position performs unexpectedly, SSAW Hotels 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 SSAW Hotels will offset losses from the drop in SSAW Hotels' long position.Anhui Transport vs. Allwin Telecommunication Co | Anhui Transport vs. Nanjing Putian Telecommunications | Anhui Transport vs. Shandong Polymer Biochemicals | Anhui Transport vs. Jinsanjiang Silicon Material |
SSAW Hotels vs. Oppein Home Group | SSAW Hotels vs. Beijing Kingsoft Office | SSAW Hotels vs. Semiconductor Manufacturing Electronics | SSAW Hotels vs. YiDong Electronics Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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