Correlation Between Anhui Deli and Shanghai Action
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By analyzing existing cross correlation between Anhui Deli Household and Shanghai Action Education, you can compare the effects of market volatilities on Anhui Deli and Shanghai Action 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 Shanghai Action. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Shanghai Action.
Diversification Opportunities for Anhui Deli and Shanghai Action
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and Shanghai is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Shanghai Action Education in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Action Education 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 Shanghai Action. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Action Education has no effect on the direction of Anhui Deli i.e., Anhui Deli and Shanghai Action go up and down completely randomly.
Pair Corralation between Anhui Deli and Shanghai Action
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 3.05 times more return on investment than Shanghai Action. However, Anhui Deli is 3.05 times more volatile than Shanghai Action Education. It trades about 0.06 of its potential returns per unit of risk. Shanghai Action Education is currently generating about -0.02 per unit of risk. If you would invest 395.00 in Anhui Deli Household on November 6, 2024 and sell it today you would earn a total of 13.00 from holding Anhui Deli Household or generate 3.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Shanghai Action Education
Performance |
| Timeline |
| Anhui Deli Household |
| Shanghai Action Education |
Anhui Deli and Shanghai Action Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Shanghai Action
The main advantage of trading using opposite Anhui Deli and Shanghai Action positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Shanghai Action 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 Shanghai Action will offset losses from the drop in Shanghai Action's long position.| Anhui Deli vs. Shenzhen Centralcon Investment | Anhui Deli vs. Zoje Resources Investment | Anhui Deli vs. Lianhe Chemical Technology | Anhui Deli vs. Xinxiang Chemical Fiber |
| Shanghai Action vs. Shenyang Chemical Industry | Shanghai Action vs. Jinsanjiang Silicon Material | Shanghai Action vs. Shenzhen Noposion Agrochemicals | Shanghai Action vs. Beijing Lier High |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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