Correlation Between Anhui Deli and Hangzhou Gisway
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By analyzing existing cross correlation between Anhui Deli Household and Hangzhou Gisway Information, you can compare the effects of market volatilities on Anhui Deli and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Hangzhou Gisway.
Diversification Opportunities for Anhui Deli and Hangzhou Gisway
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Hangzhou is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of Anhui Deli i.e., Anhui Deli and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between Anhui Deli and Hangzhou Gisway
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 0.96 times more return on investment than Hangzhou Gisway. However, Anhui Deli Household is 1.05 times less risky than Hangzhou Gisway. It trades about 0.14 of its potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.05 per unit of risk. If you would invest 497.00 in Anhui Deli Household on September 13, 2024 and sell it today you would earn a total of 33.00 from holding Anhui Deli Household or generate 6.64% 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. Hangzhou Gisway Information
Performance |
| Timeline |
| Anhui Deli Household |
| Hangzhou Gisway Info |
Anhui Deli and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Hangzhou Gisway
The main advantage of trading using opposite Anhui Deli and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway'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 |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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