Correlation Between Anhui Deli and Iat Automobile
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By analyzing existing cross correlation between Anhui Deli Household and Iat Automobile Technology, you can compare the effects of market volatilities on Anhui Deli and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Iat Automobile.
Diversification Opportunities for Anhui Deli and Iat Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Iat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Anhui Deli i.e., Anhui Deli and Iat Automobile go up and down completely randomly.
Pair Corralation between Anhui Deli and Iat Automobile
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 0.74 times more return on investment than Iat Automobile. However, Anhui Deli Household is 1.35 times less risky than Iat Automobile. It trades about 0.1 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about 0.06 per unit of risk. If you would invest 379.00 in Anhui Deli Household on September 15, 2024 and sell it today you would earn a total of 150.00 from holding Anhui Deli Household or generate 39.58% 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. Iat Automobile Technology
Performance |
| Timeline |
| Anhui Deli Household |
| Iat Automobile Technology |
Anhui Deli and Iat Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Iat Automobile
The main advantage of trading using opposite Anhui Deli and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile'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 |
| Iat Automobile vs. BeiGene | Iat Automobile vs. Kweichow Moutai Co | Iat Automobile vs. Beijing Roborock Technology | Iat Automobile vs. G bits Network 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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