Correlation Between Anhui Deli and Piotech
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By analyzing existing cross correlation between Anhui Deli Household and Piotech Inc A, you can compare the effects of market volatilities on Anhui Deli and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Piotech.
Diversification Opportunities for Anhui Deli and Piotech
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Piotech is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Anhui Deli i.e., Anhui Deli and Piotech go up and down completely randomly.
Pair Corralation between Anhui Deli and Piotech
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 0.83 times more return on investment than Piotech. However, Anhui Deli Household is 1.2 times less risky than Piotech. It trades about -0.01 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.01 per unit of risk. If you would invest 661.00 in Anhui Deli Household on September 14, 2024 and sell it today you would lose (132.00) from holding Anhui Deli Household or give up 19.97% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Anhui Deli Household vs. Piotech Inc A
Performance |
| Timeline |
| Anhui Deli Household |
| Piotech Inc A |
Anhui Deli and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Piotech
The main advantage of trading using opposite Anhui Deli and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech'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 |
| Piotech vs. Wuhan Hvsen Biotechnology | Piotech vs. Dongfeng Automobile Co | Piotech vs. Shanghai Rendu Biotechnology | Piotech vs. Anhui Deli Household |
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.
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