Correlation Between XCMG Construction and Anhui Deli
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By analyzing existing cross correlation between XCMG Construction Machinery and Anhui Deli Household, you can compare the effects of market volatilities on XCMG Construction and Anhui Deli 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 XCMG Construction with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of XCMG Construction and Anhui Deli.
Diversification Opportunities for XCMG Construction and Anhui Deli
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between XCMG and Anhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding XCMG Construction Machinery and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household and XCMG Construction 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 XCMG Construction Machinery are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of XCMG Construction i.e., XCMG Construction and Anhui Deli go up and down completely randomly.
Pair Corralation between XCMG Construction and Anhui Deli
Assuming the 90 days trading horizon XCMG Construction is expected to generate 1.44 times less return on investment than Anhui Deli. But when comparing it to its historical volatility, XCMG Construction Machinery is 1.71 times less risky than Anhui Deli. It trades about 0.04 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 482.00 in Anhui Deli Household on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Anhui Deli Household or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
XCMG Construction Machinery vs. Anhui Deli Household
Performance |
| Timeline |
| XCMG Construction |
| Anhui Deli Household |
XCMG Construction and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XCMG Construction and Anhui Deli
The main advantage of trading using opposite XCMG Construction and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XCMG Construction position performs unexpectedly, Anhui Deli 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 Deli will offset losses from the drop in Anhui Deli's long position.| XCMG Construction vs. PetroChina Co Ltd | XCMG Construction vs. China State Construction | XCMG Construction vs. China Mobile Limited | XCMG Construction vs. Industrial and Commercial |
| Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. Bank of China | Anhui Deli vs. China Construction Bank |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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