Correlation Between Anhui Deli and Guangzhou Shangpin
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By analyzing existing cross correlation between Anhui Deli Household and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Anhui Deli and Guangzhou Shangpin 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 Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Guangzhou Shangpin.
Diversification Opportunities for Anhui Deli and Guangzhou Shangpin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Guangzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Anhui Deli i.e., Anhui Deli and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Anhui Deli and Guangzhou Shangpin
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Guangzhou Shangpin. In addition to that, Anhui Deli is 1.04 times more volatile than Guangzhou Shangpin Home. It trades about -0.01 of its total potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about 0.01 per unit of volatility. If you would invest 1,706 in Guangzhou Shangpin Home on September 3, 2024 and sell it today you would lose (171.00) from holding Guangzhou Shangpin Home or give up 10.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Anhui Deli Household |
| Guangzhou Shangpin Home |
Anhui Deli and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Guangzhou Shangpin
The main advantage of trading using opposite Anhui Deli and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Guangzhou Shangpin 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 Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.| Anhui Deli vs. PetroChina Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Life Insurance |
| Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. China Mobile Limited | Guangzhou Shangpin vs. Industrial and Commercial | Guangzhou Shangpin vs. China Life Insurance |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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