Correlation Between Anhui Deli and King Strong
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By analyzing existing cross correlation between Anhui Deli Household and King Strong New Material, you can compare the effects of market volatilities on Anhui Deli and King Strong 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 King Strong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and King Strong.
Diversification Opportunities for Anhui Deli and King Strong
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and King is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and King Strong New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on King Strong New 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 King Strong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of King Strong New has no effect on the direction of Anhui Deli i.e., Anhui Deli and King Strong go up and down completely randomly.
Pair Corralation between Anhui Deli and King Strong
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 0.65 times more return on investment than King Strong. However, Anhui Deli Household is 1.53 times less risky than King Strong. It trades about 0.05 of its potential returns per unit of risk. King Strong New Material is currently generating about -0.08 per unit of risk. If you would invest 502.00 in Anhui Deli Household on September 12, 2024 and sell it today you would earn a total of 10.00 from holding Anhui Deli Household or generate 1.99% 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. King Strong New Material
Performance |
| Timeline |
| Anhui Deli Household |
| King Strong New |
Anhui Deli and King Strong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and King Strong
The main advantage of trading using opposite Anhui Deli and King Strong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, King Strong 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 King Strong will offset losses from the drop in King Strong'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 |
| King Strong vs. Agricultural Bank of | King Strong vs. Industrial and Commercial | King Strong vs. Bank of China | King Strong vs. PetroChina Co Ltd |
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 Stocks Directory module to find actively traded stocks across global markets.
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