Correlation Between Anhui Deli and Guangzhou KingTeller
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By analyzing existing cross correlation between Anhui Deli Household and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Anhui Deli and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Guangzhou KingTeller.
Diversification Opportunities for Anhui Deli and Guangzhou KingTeller
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Anhui Deli i.e., Anhui Deli and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Anhui Deli and Guangzhou KingTeller
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 0.9 times more return on investment than Guangzhou KingTeller. However, Anhui Deli Household is 1.11 times less risky than Guangzhou KingTeller. It trades about -0.04 of its potential returns per unit of risk. Guangzhou KingTeller Technology is currently generating about -0.31 per unit of risk. If you would invest 512.00 in Anhui Deli Household on October 11, 2024 and sell it today you would lose (30.00) from holding Anhui Deli Household or give up 5.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Anhui Deli Household |
| Guangzhou KingTeller |
Anhui Deli and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Guangzhou KingTeller
The main advantage of trading using opposite Anhui Deli and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Anhui Deli vs. Hunan Mendale Hometextile | Anhui Deli vs. Zhongrun Resources Investment | Anhui Deli vs. Chengdu Xingrong Investment | Anhui Deli vs. Zoje Resources Investment |
| Guangzhou KingTeller vs. Guangzhou Dongfang Hotel | Guangzhou KingTeller vs. TongFu Microelectronics Co | Guangzhou KingTeller vs. Anhui Deli Household | Guangzhou KingTeller vs. BTG Hotels 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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