Correlation Between Anhui Deli and Yunnan Xiyi
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Deli Household and Yunnan Xiyi Industrial, you can compare the effects of market volatilities on Anhui Deli and Yunnan Xiyi 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 Yunnan Xiyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Yunnan Xiyi.
Diversification Opportunities for Anhui Deli and Yunnan Xiyi
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Yunnan is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Yunnan Xiyi Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Xiyi Industrial 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 Yunnan Xiyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Xiyi Industrial has no effect on the direction of Anhui Deli i.e., Anhui Deli and Yunnan Xiyi go up and down completely randomly.
Pair Corralation between Anhui Deli and Yunnan Xiyi
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Yunnan Xiyi. In addition to that, Anhui Deli is 1.06 times more volatile than Yunnan Xiyi Industrial. It trades about 0.0 of its total potential returns per unit of risk. Yunnan Xiyi Industrial is currently generating about 0.05 per unit of volatility. If you would invest 1,517 in Yunnan Xiyi Industrial on September 12, 2024 and sell it today you would earn a total of 605.00 from holding Yunnan Xiyi Industrial or generate 39.88% 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. Yunnan Xiyi Industrial
Performance |
| Timeline |
| Anhui Deli Household |
| Yunnan Xiyi Industrial |
Anhui Deli and Yunnan Xiyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Yunnan Xiyi
The main advantage of trading using opposite Anhui Deli and Yunnan Xiyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Yunnan Xiyi 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 Yunnan Xiyi will offset losses from the drop in Yunnan Xiyi's long position.| Anhui Deli vs. Lutian Machinery Co | Anhui Deli vs. PetroChina Co Ltd | Anhui Deli vs. Bank of China | Anhui Deli vs. Gansu Jiu Steel |
| Yunnan Xiyi vs. Lutian Machinery Co | Yunnan Xiyi vs. PetroChina Co Ltd | Yunnan Xiyi vs. Bank of China | Yunnan Xiyi vs. Gansu Jiu Steel |
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.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |