Correlation Between Anhui Deli and Jiangyin Jianghua
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By analyzing existing cross correlation between Anhui Deli Household and Jiangyin Jianghua Microelectronics, you can compare the effects of market volatilities on Anhui Deli and Jiangyin Jianghua 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 Jiangyin Jianghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Jiangyin Jianghua.
Diversification Opportunities for Anhui Deli and Jiangyin Jianghua
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Jiangyin is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Jiangyin Jianghua Microelectro in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangyin Jianghua 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 Jiangyin Jianghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangyin Jianghua has no effect on the direction of Anhui Deli i.e., Anhui Deli and Jiangyin Jianghua go up and down completely randomly.
Pair Corralation between Anhui Deli and Jiangyin Jianghua
Assuming the 90 days trading horizon Anhui Deli is expected to generate 5.59 times less return on investment than Jiangyin Jianghua. But when comparing it to its historical volatility, Anhui Deli Household is 2.28 times less risky than Jiangyin Jianghua. It trades about 0.12 of its potential returns per unit of risk. Jiangyin Jianghua Microelectronics is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 1,539 in Jiangyin Jianghua Microelectronics on September 3, 2024 and sell it today you would earn a total of 517.00 from holding Jiangyin Jianghua Microelectronics or generate 33.59% 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. Jiangyin Jianghua Microelectro
Performance |
| Timeline |
| Anhui Deli Household |
| Jiangyin Jianghua |
Anhui Deli and Jiangyin Jianghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Jiangyin Jianghua
The main advantage of trading using opposite Anhui Deli and Jiangyin Jianghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Jiangyin Jianghua 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 Jiangyin Jianghua will offset losses from the drop in Jiangyin Jianghua's long position.| Anhui Deli vs. PetroChina Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Life Insurance |
| Jiangyin Jianghua vs. Agricultural Bank of | Jiangyin Jianghua vs. China Construction Bank | Jiangyin Jianghua vs. Postal Savings Bank | Jiangyin Jianghua vs. Bank of Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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