Correlation Between Anhui Deli and Henan Shuanghui
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By analyzing existing cross correlation between Anhui Deli Household and Henan Shuanghui Investment, you can compare the effects of market volatilities on Anhui Deli and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Henan Shuanghui.
Diversification Opportunities for Anhui Deli and Henan Shuanghui
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Henan is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of Anhui Deli i.e., Anhui Deli and Henan Shuanghui go up and down completely randomly.
Pair Corralation between Anhui Deli and Henan Shuanghui
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Henan Shuanghui. In addition to that, Anhui Deli is 2.44 times more volatile than Henan Shuanghui Investment. It trades about -0.01 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.02 per unit of volatility. 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 |
Anhui Deli Household vs. Henan Shuanghui Investment
Performance |
| Timeline |
| Anhui Deli Household |
| Henan Shuanghui Inve |
Anhui Deli and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Henan Shuanghui
The main advantage of trading using opposite Anhui Deli and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's 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 |
| Henan Shuanghui vs. Nanjing Putian Telecommunications | Henan Shuanghui vs. Tianjin Realty Development | Henan Shuanghui vs. Kangyue Technology Co | Henan Shuanghui vs. Shenzhen Hifuture Electric |
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 Valuation module to check real value of public entities based on technical and fundamental data.
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