Correlation Between Xizi Clean and Anhui Deli
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By analyzing existing cross correlation between Xizi Clean Energy and Anhui Deli Household, you can compare the effects of market volatilities on Xizi Clean 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 Xizi Clean with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xizi Clean and Anhui Deli.
Diversification Opportunities for Xizi Clean and Anhui Deli
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xizi and Anhui is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Xizi Clean Energy 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 Xizi Clean 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 Xizi Clean Energy 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 Xizi Clean i.e., Xizi Clean and Anhui Deli go up and down completely randomly.
Pair Corralation between Xizi Clean and Anhui Deli
Assuming the 90 days trading horizon Xizi Clean Energy is expected to generate 0.77 times more return on investment than Anhui Deli. However, Xizi Clean Energy is 1.3 times less risky than Anhui Deli. It trades about 0.0 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 1,321 in Xizi Clean Energy on September 14, 2024 and sell it today you would lose (132.00) from holding Xizi Clean Energy or give up 9.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Xizi Clean Energy vs. Anhui Deli Household
Performance |
| Timeline |
| Xizi Clean Energy |
| Anhui Deli Household |
Xizi Clean and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xizi Clean and Anhui Deli
The main advantage of trading using opposite Xizi Clean and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xizi Clean 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.| Xizi Clean vs. Industrial and Commercial | Xizi Clean vs. Kweichow Moutai Co | Xizi Clean vs. Agricultural Bank of | Xizi Clean vs. China Mobile Limited |
| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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