Correlation Between Anhui Deli and Lootom Telcovideo
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By analyzing existing cross correlation between Anhui Deli Household and Lootom Telcovideo Network, you can compare the effects of market volatilities on Anhui Deli and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Lootom Telcovideo.
Diversification Opportunities for Anhui Deli and Lootom Telcovideo
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Lootom is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of Anhui Deli i.e., Anhui Deli and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between Anhui Deli and Lootom Telcovideo
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Lootom Telcovideo. In addition to that, Anhui Deli is 1.17 times more volatile than Lootom Telcovideo Network. It trades about -0.02 of its total potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.04 per unit of volatility. If you would invest 625.00 in Lootom Telcovideo Network on September 28, 2024 and sell it today you would earn a total of 210.00 from holding Lootom Telcovideo Network or generate 33.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Anhui Deli Household vs. Lootom Telcovideo Network
Performance |
| Timeline |
| Anhui Deli Household |
| Lootom Telcovideo Network |
Anhui Deli and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Lootom Telcovideo
The main advantage of trading using opposite Anhui Deli and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| Anhui Deli vs. Northking Information Technology | Anhui Deli vs. Qingdao Choho Industrial | Anhui Deli vs. Xinjiang Baodi Mining | Anhui Deli vs. Hengli Industrial Development |
| Lootom Telcovideo vs. Western Metal Materials | Lootom Telcovideo vs. Dymatic Chemicals | Lootom Telcovideo vs. Xinjiang Baodi Mining | Lootom Telcovideo vs. Shenzhen Noposion Agrochemicals |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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