Correlation Between Anhui Deli and Shenzhen Coship
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By analyzing existing cross correlation between Anhui Deli Household and Shenzhen Coship Electronics, you can compare the effects of market volatilities on Anhui Deli and Shenzhen Coship 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 Shenzhen Coship. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Shenzhen Coship.
Diversification Opportunities for Anhui Deli and Shenzhen Coship
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Shenzhen is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Shenzhen Coship Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Coship Elec 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 Shenzhen Coship. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Coship Elec has no effect on the direction of Anhui Deli i.e., Anhui Deli and Shenzhen Coship go up and down completely randomly.
Pair Corralation between Anhui Deli and Shenzhen Coship
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 1.66 times more return on investment than Shenzhen Coship. However, Anhui Deli is 1.66 times more volatile than Shenzhen Coship Electronics. It trades about 0.01 of its potential returns per unit of risk. Shenzhen Coship Electronics is currently generating about -0.12 per unit of risk. If you would invest 424.00 in Anhui Deli Household on October 28, 2024 and sell it today you would lose (9.00) from holding Anhui Deli Household or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Shenzhen Coship Electronics
Performance |
| Timeline |
| Anhui Deli Household |
| Shenzhen Coship Elec |
Anhui Deli and Shenzhen Coship Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Shenzhen Coship
The main advantage of trading using opposite Anhui Deli and Shenzhen Coship positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Shenzhen Coship 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 Shenzhen Coship will offset losses from the drop in Shenzhen Coship's long position.| Anhui Deli vs. New Hope Dairy | Anhui Deli vs. Zhongyin Babi Food | Anhui Deli vs. Allwin Telecommunication Co | Anhui Deli vs. Jiahe Foods Industry |
| Shenzhen Coship vs. Zhongyin Babi Food | Shenzhen Coship vs. Hainan Haiqi Transportation | Shenzhen Coship vs. Shenzhen Urban Transport | Shenzhen Coship vs. Dazhong Transportation Group |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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