Correlation Between Anhui Deli and Shengtak New
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By analyzing existing cross correlation between Anhui Deli Household and Shengtak New Material, you can compare the effects of market volatilities on Anhui Deli and Shengtak New 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 Shengtak New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Shengtak New.
Diversification Opportunities for Anhui Deli and Shengtak New
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Shengtak is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Shengtak New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shengtak New Material 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 Shengtak New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shengtak New Material has no effect on the direction of Anhui Deli i.e., Anhui Deli and Shengtak New go up and down completely randomly.
Pair Corralation between Anhui Deli and Shengtak New
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Shengtak New. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Deli Household is 1.16 times less risky than Shengtak New. The stock trades about -0.02 of its potential returns per unit of risk. The Shengtak New Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 3,271 in Shengtak New Material on September 28, 2024 and sell it today you would lose (114.00) from holding Shengtak New Material or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Shengtak New Material
Performance |
| Timeline |
| Anhui Deli Household |
| Shengtak New Material |
Anhui Deli and Shengtak New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Shengtak New
The main advantage of trading using opposite Anhui Deli and Shengtak New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Shengtak New 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 Shengtak New will offset losses from the drop in Shengtak New'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 |
| Shengtak New vs. Peoples Insurance of | Shengtak New vs. Anhui Deli Household | Shengtak New vs. Harvest Fund Management | Shengtak New vs. Marssenger Kitchenware Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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