Correlation Between Anhui Deli and Zhejiang Yayi
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By analyzing existing cross correlation between Anhui Deli Household and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Anhui Deli and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Zhejiang Yayi.
Diversification Opportunities for Anhui Deli and Zhejiang Yayi
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Zhejiang is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Anhui Deli i.e., Anhui Deli and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Anhui Deli and Zhejiang Yayi
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Zhejiang Yayi. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Deli Household is 1.14 times less risky than Zhejiang Yayi. The stock trades about -0.02 of its potential returns per unit of risk. The Zhejiang Yayi Metal is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 2,702 in Zhejiang Yayi Metal on September 28, 2024 and sell it today you would lose (282.00) from holding Zhejiang Yayi Metal or give up 10.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Anhui Deli Household |
| Zhejiang Yayi Metal |
Anhui Deli and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Zhejiang Yayi
The main advantage of trading using opposite Anhui Deli and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi'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 |
| Zhejiang Yayi vs. Agricultural Bank of | Zhejiang Yayi vs. Industrial and Commercial | Zhejiang Yayi vs. Bank of China | Zhejiang Yayi vs. China Construction Bank |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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