Correlation Between Anhui Deli and Guangzhou Automobile
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By analyzing existing cross correlation between Anhui Deli Household and Guangzhou Automobile Group, you can compare the effects of market volatilities on Anhui Deli and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Guangzhou Automobile.
Diversification Opportunities for Anhui Deli and Guangzhou Automobile
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Anhui Deli i.e., Anhui Deli and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Anhui Deli and Guangzhou Automobile
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 1.7 times more return on investment than Guangzhou Automobile. However, Anhui Deli is 1.7 times more volatile than Guangzhou Automobile Group. It trades about 0.0 of its potential returns per unit of risk. Guangzhou Automobile Group is currently generating about -0.01 per unit of risk. If you would invest 630.00 in Anhui Deli Household on September 14, 2024 and sell it today you would lose (89.00) from holding Anhui Deli Household or give up 14.13% 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. Guangzhou Automobile Group
Performance |
| Timeline |
| Anhui Deli Household |
| Guangzhou Automobile |
Anhui Deli and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Guangzhou Automobile
The main advantage of trading using opposite Anhui Deli and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile'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 |
| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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