Correlation Between Shaanxi Energy and Anhui Deli
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By analyzing existing cross correlation between Shaanxi Energy Investment and Anhui Deli Household, you can compare the effects of market volatilities on Shaanxi Energy 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 Shaanxi Energy with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shaanxi Energy and Anhui Deli.
Diversification Opportunities for Shaanxi Energy and Anhui Deli
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shaanxi and Anhui is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Shaanxi Energy 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 Shaanxi Energy 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 Shaanxi Energy 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 Shaanxi Energy i.e., Shaanxi Energy and Anhui Deli go up and down completely randomly.
Pair Corralation between Shaanxi Energy and Anhui Deli
Assuming the 90 days trading horizon Shaanxi Energy Investment is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Shaanxi Energy Investment is 2.4 times less risky than Anhui Deli. The stock trades about -0.14 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 459.00 in Anhui Deli Household on August 25, 2024 and sell it today you would earn a total of 1.00 from holding Anhui Deli Household or generate 0.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shaanxi Energy Investment vs. Anhui Deli Household
Performance |
| Timeline |
| Shaanxi Energy Investment |
| Anhui Deli Household |
Shaanxi Energy and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shaanxi Energy and Anhui Deli
The main advantage of trading using opposite Shaanxi Energy and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shaanxi Energy 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.| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xiangyang Automobile Bearing | Shaanxi Energy vs. Suzhou Novoprotein Scientific | Shaanxi Energy vs. COL Digital Publishing |
| Anhui Deli vs. Hunan Investment Group | Anhui Deli vs. Shaanxi Energy Investment | Anhui Deli vs. Jiangsu Yueda Investment | Anhui Deli vs. Jiangsu Xinri E Vehicle |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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