Correlation Between Anhui Deli and Shandong Polymer
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By analyzing existing cross correlation between Anhui Deli Household and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on Anhui Deli and Shandong Polymer 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 Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Shandong Polymer.
Diversification Opportunities for Anhui Deli and Shandong Polymer
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Shandong is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio 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 Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of Anhui Deli i.e., Anhui Deli and Shandong Polymer go up and down completely randomly.
Pair Corralation between Anhui Deli and Shandong Polymer
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 1.03 times more return on investment than Shandong Polymer. However, Anhui Deli is 1.03 times more volatile than Shandong Polymer Biochemicals. It trades about 0.21 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about 0.06 per unit of risk. If you would invest 478.00 in Anhui Deli Household on September 15, 2024 and sell it today you would earn a total of 51.00 from holding Anhui Deli Household or generate 10.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Shandong Polymer Biochemicals
Performance |
| Timeline |
| Anhui Deli Household |
| Shandong Polymer Bio |
Anhui Deli and Shandong Polymer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Shandong Polymer
The main advantage of trading using opposite Anhui Deli and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer'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 |
| Shandong Polymer vs. Anhui Deli Household | Shandong Polymer vs. Jahen Household Products | Shandong Polymer vs. Fujian Rongji Software | Shandong Polymer vs. Lianhe Chemical Technology |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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