Correlation Between Hunan Investment and Anhui Deli
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By analyzing existing cross correlation between Hunan Investment Group and Anhui Deli Household, you can compare the effects of market volatilities on Hunan Investment 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 Hunan Investment with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hunan Investment and Anhui Deli.
Diversification Opportunities for Hunan Investment and Anhui Deli
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hunan and Anhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Hunan Investment Group 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 Hunan Investment 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 Hunan Investment Group 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 Hunan Investment i.e., Hunan Investment and Anhui Deli go up and down completely randomly.
Pair Corralation between Hunan Investment and Anhui Deli
Assuming the 90 days trading horizon Hunan Investment Group is expected to generate 0.99 times more return on investment than Anhui Deli. However, Hunan Investment Group is 1.01 times less risky than Anhui Deli. It trades about 0.21 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.03 per unit of risk. If you would invest 513.00 in Hunan Investment Group on August 29, 2024 and sell it today you would earn a total of 86.00 from holding Hunan Investment Group or generate 16.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hunan Investment Group vs. Anhui Deli Household
Performance |
| Timeline |
| Hunan Investment |
| Anhui Deli Household |
Hunan Investment and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hunan Investment and Anhui Deli
The main advantage of trading using opposite Hunan Investment and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hunan Investment 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.| Hunan Investment vs. PetroChina Co Ltd | Hunan Investment vs. China State Construction | Hunan Investment vs. China Mobile Limited | Hunan Investment 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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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