Correlation Between Anhui Deli and Chahua Modern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Deli Household and Chahua Modern Housewares, you can compare the effects of market volatilities on Anhui Deli and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Chahua Modern.
Diversification Opportunities for Anhui Deli and Chahua Modern
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Chahua is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Anhui Deli i.e., Anhui Deli and Chahua Modern go up and down completely randomly.
Pair Corralation between Anhui Deli and Chahua Modern
Assuming the 90 days trading horizon Anhui Deli is expected to generate 5.03 times less return on investment than Chahua Modern. But when comparing it to its historical volatility, Anhui Deli Household is 1.34 times less risky than Chahua Modern. It trades about 0.1 of its potential returns per unit of risk. Chahua Modern Housewares is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 1,229 in Chahua Modern Housewares on August 25, 2024 and sell it today you would earn a total of 1,139 from holding Chahua Modern Housewares or generate 92.68% 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. Chahua Modern Housewares
Performance |
| Timeline |
| Anhui Deli Household |
| Chahua Modern Housewares |
Anhui Deli and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Chahua Modern
The main advantage of trading using opposite Anhui Deli and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Anhui Deli vs. Hunan Investment Group | Anhui Deli vs. Shaanxi Energy Investment | Anhui Deli vs. Jiangsu Yueda Investment | Anhui Deli vs. Jiangsu Xinri E Vehicle |
| Chahua Modern vs. Xiangyang Automobile Bearing | Chahua Modern vs. Ligao Foods CoLtd | Chahua Modern vs. Xiamen Jihong Package | Chahua Modern vs. Yankershop Food Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |