Correlation Between Anhui Deli and Changchun BCHT
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By analyzing existing cross correlation between Anhui Deli Household and Changchun BCHT Biotechnology, you can compare the effects of market volatilities on Anhui Deli and Changchun BCHT 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 Changchun BCHT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Changchun BCHT.
Diversification Opportunities for Anhui Deli and Changchun BCHT
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Changchun is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Changchun BCHT Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun BCHT Biote 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 Changchun BCHT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun BCHT Biote has no effect on the direction of Anhui Deli i.e., Anhui Deli and Changchun BCHT go up and down completely randomly.
Pair Corralation between Anhui Deli and Changchun BCHT
Assuming the 90 days trading horizon Anhui Deli Household is expected to generate 1.03 times more return on investment than Changchun BCHT. However, Anhui Deli is 1.03 times more volatile than Changchun BCHT Biotechnology. It trades about 0.03 of its potential returns per unit of risk. Changchun BCHT Biotechnology is currently generating about -0.05 per unit of risk. If you would invest 394.00 in Anhui Deli Household on November 3, 2024 and sell it today you would earn a total of 14.00 from holding Anhui Deli Household or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Deli Household vs. Changchun BCHT Biotechnology
Performance |
| Timeline |
| Anhui Deli Household |
| Changchun BCHT Biote |
Anhui Deli and Changchun BCHT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Deli and Changchun BCHT
The main advantage of trading using opposite Anhui Deli and Changchun BCHT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Changchun BCHT 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 Changchun BCHT will offset losses from the drop in Changchun BCHT's long position.| Anhui Deli vs. Thunder Software Technology | Anhui Deli vs. Linewell Software Co | Anhui Deli vs. Hubei Tech Semiconductors | Anhui Deli vs. Suzhou Oriental Semiconductor |
| Changchun BCHT vs. PetroChina Co Ltd | Changchun BCHT vs. China Railway Construction | Changchun BCHT vs. China Mobile Limited | Changchun BCHT vs. Industrial and Commercial |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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