Correlation Between Anhui Deli and State Grid
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By analyzing existing cross correlation between Anhui Deli Household and State Grid InformationCommunication, you can compare the effects of market volatilities on Anhui Deli and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and State Grid.
Diversification Opportunities for Anhui Deli and State Grid
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and State is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Anhui Deli i.e., Anhui Deli and State Grid go up and down completely randomly.
Pair Corralation between Anhui Deli and State Grid
Assuming the 90 days trading horizon Anhui Deli is expected to generate 2.67 times less return on investment than State Grid. But when comparing it to its historical volatility, Anhui Deli Household is 1.06 times less risky than State Grid. It trades about 0.03 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 1,935 in State Grid InformationCommunication on August 28, 2024 and sell it today you would earn a total of 109.00 from holding State Grid InformationCommunication or generate 5.63% 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. State Grid InformationCommunic
Performance |
| Timeline |
| Anhui Deli Household |
| State Grid Informati |
Anhui Deli and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and State Grid
The main advantage of trading using opposite Anhui Deli and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Anhui Deli vs. Xiangyang Automobile Bearing | Anhui Deli vs. Sportsoul Co Ltd | Anhui Deli vs. Guangzhou Haige Communications | Anhui Deli vs. China Sports Industry |
| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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