Correlation Between Henan Shuanghui and Anhui Deli
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By analyzing existing cross correlation between Henan Shuanghui Investment and Anhui Deli Household, you can compare the effects of market volatilities on Henan Shuanghui 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 Henan Shuanghui with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and Anhui Deli.
Diversification Opportunities for Henan Shuanghui and Anhui Deli
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Henan and Anhui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment 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 Henan Shuanghui 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 Henan Shuanghui Investment 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 Henan Shuanghui i.e., Henan Shuanghui and Anhui Deli go up and down completely randomly.
Pair Corralation between Henan Shuanghui and Anhui Deli
Assuming the 90 days trading horizon Henan Shuanghui Investment is expected to generate 0.41 times more return on investment than Anhui Deli. However, Henan Shuanghui Investment is 2.44 times less risky than Anhui Deli. It trades about 0.02 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.01 per unit of risk. If you would invest 2,444 in Henan Shuanghui Investment on September 14, 2024 and sell it today you would earn a total of 109.00 from holding Henan Shuanghui Investment or generate 4.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. Anhui Deli Household
Performance |
| Timeline |
| Henan Shuanghui Inve |
| Anhui Deli Household |
Henan Shuanghui and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and Anhui Deli
The main advantage of trading using opposite Henan Shuanghui and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui 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.| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Bank of China |
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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