Correlation Between Anhui Deli and Heilongjiang Transport
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By analyzing existing cross correlation between Anhui Deli Household and Heilongjiang Transport Development, you can compare the effects of market volatilities on Anhui Deli and Heilongjiang Transport 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 Heilongjiang Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Heilongjiang Transport.
Diversification Opportunities for Anhui Deli and Heilongjiang Transport
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Heilongjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Heilongjiang Transport Develop in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Heilongjiang Transport 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 Heilongjiang Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Heilongjiang Transport has no effect on the direction of Anhui Deli i.e., Anhui Deli and Heilongjiang Transport go up and down completely randomly.
Pair Corralation between Anhui Deli and Heilongjiang Transport
Assuming the 90 days trading horizon Anhui Deli Household is expected to under-perform the Heilongjiang Transport. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Deli Household is 1.01 times less risky than Heilongjiang Transport. The stock trades about -0.02 of its potential returns per unit of risk. The Heilongjiang Transport Development is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 314.00 in Heilongjiang Transport Development on September 28, 2024 and sell it today you would earn a total of 54.00 from holding Heilongjiang Transport Development or generate 17.2% 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. Heilongjiang Transport Develop
Performance |
| Timeline |
| Anhui Deli Household |
| Heilongjiang Transport |
Anhui Deli and Heilongjiang Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Heilongjiang Transport
The main advantage of trading using opposite Anhui Deli and Heilongjiang Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Heilongjiang Transport 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 Heilongjiang Transport will offset losses from the drop in Heilongjiang Transport'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 |
| Heilongjiang Transport vs. Agricultural Bank of | Heilongjiang Transport vs. Industrial and Commercial | Heilongjiang Transport vs. Bank of China | Heilongjiang Transport 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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