Correlation Between Anhui Deli and Zhongrun Resources
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By analyzing existing cross correlation between Anhui Deli Household and Zhongrun Resources Investment, you can compare the effects of market volatilities on Anhui Deli and Zhongrun Resources 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 Anhui Deli with a short position of Zhongrun Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Zhongrun Resources.
Diversification Opportunities for Anhui Deli and Zhongrun Resources
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Zhongrun is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Zhongrun Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongrun Resources and Anhui Deli 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 Anhui Deli Household are associated (or correlated) with Zhongrun Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongrun Resources has no effect on the direction of Anhui Deli i.e., Anhui Deli and Zhongrun Resources go up and down completely randomly.
Pair Corralation between Anhui Deli and Zhongrun Resources
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Zhongrun Resources. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Deli Household is 1.24 times less risky than Zhongrun Resources. The stock trades about -0.01 of its potential returns per unit of risk. The Zhongrun Resources Investment is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 434.00 in Zhongrun Resources Investment on September 14, 2024 and sell it today you would lose (113.00) from holding Zhongrun Resources Investment or give up 26.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.23% |
| Values | Daily Returns |
Anhui Deli Household vs. Zhongrun Resources Investment
Performance |
| Timeline |
| Anhui Deli Household |
| Zhongrun Resources |
Anhui Deli and Zhongrun Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Zhongrun Resources
The main advantage of trading using opposite Anhui Deli and Zhongrun Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Zhongrun Resources 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 Zhongrun Resources will offset losses from the drop in Zhongrun Resources' long position.| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Bank of China |
| Zhongrun Resources vs. Postal Savings Bank | Zhongrun Resources vs. Hunan Investment Group | Zhongrun Resources vs. Ningbo Ligong Online | Zhongrun Resources vs. Guangdong Silvere Sci |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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