Correlation Between Anhui Deli and Zhejiang Kingland
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By analyzing existing cross correlation between Anhui Deli Household and Zhejiang Kingland Pipeline, you can compare the effects of market volatilities on Anhui Deli and Zhejiang Kingland 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 Zhejiang Kingland. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Zhejiang Kingland.
Diversification Opportunities for Anhui Deli and Zhejiang Kingland
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Zhejiang Kingland Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Kingland 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 Zhejiang Kingland. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Kingland has no effect on the direction of Anhui Deli i.e., Anhui Deli and Zhejiang Kingland go up and down completely randomly.
Pair Corralation between Anhui Deli and Zhejiang Kingland
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 2.34 times more return on investment than Zhejiang Kingland. However, Anhui Deli is 2.34 times more volatile than Zhejiang Kingland Pipeline. It trades about 0.03 of its potential returns per unit of risk. Zhejiang Kingland Pipeline is currently generating about -0.17 per unit of risk. If you would invest 482.00 in Anhui Deli Household on August 28, 2024 and sell it today you would earn a total of 6.00 from holding Anhui Deli Household or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Zhejiang Kingland Pipeline
Performance |
| Timeline |
| Anhui Deli Household |
| Zhejiang Kingland |
Anhui Deli and Zhejiang Kingland Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Zhejiang Kingland
The main advantage of trading using opposite Anhui Deli and Zhejiang Kingland positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Zhejiang Kingland 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 Zhejiang Kingland will offset losses from the drop in Zhejiang Kingland's long position.| Anhui Deli vs. Xiangyang Automobile Bearing | Anhui Deli vs. Sportsoul Co Ltd | Anhui Deli vs. Guangzhou Haige Communications | Anhui Deli vs. China Sports Industry |
| Zhejiang Kingland vs. HaiXin Foods Co | Zhejiang Kingland vs. Juewei Food Co | Zhejiang Kingland vs. Gan Yuan Foods | Zhejiang Kingland vs. Great Sun Foods Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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