Correlation Between Qingdao Choho and Anhui Deli
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By analyzing existing cross correlation between Qingdao Choho Industrial and Anhui Deli Household, you can compare the effects of market volatilities on Qingdao Choho and Anhui Deli 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 Qingdao Choho with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qingdao Choho and Anhui Deli.
Diversification Opportunities for Qingdao Choho and Anhui Deli
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Qingdao and Anhui is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Qingdao Choho Industrial and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household and Qingdao Choho 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 Qingdao Choho Industrial are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Qingdao Choho i.e., Qingdao Choho and Anhui Deli go up and down completely randomly.
Pair Corralation between Qingdao Choho and Anhui Deli
Assuming the 90 days trading horizon Qingdao Choho Industrial is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Qingdao Choho Industrial is 2.42 times less risky than Anhui Deli. The stock trades about -0.16 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Anhui Deli Household on October 17, 2024 and sell it today you would lose (28.00) from holding Anhui Deli Household or give up 5.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qingdao Choho Industrial vs. Anhui Deli Household
Performance |
| Timeline |
| Qingdao Choho Industrial |
| Anhui Deli Household |
Qingdao Choho and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qingdao Choho and Anhui Deli
The main advantage of trading using opposite Qingdao Choho and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qingdao Choho position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.| Qingdao Choho vs. Jiangsu Jinling Sports | Qingdao Choho vs. Yunnan Jianzhijia Health Chain | Qingdao Choho vs. Sportsoul Co Ltd | Qingdao Choho vs. Heilongjiang Transport Development |
| Anhui Deli vs. Easyhome New Retail | Anhui Deli vs. Leyard Optoelectronic | Anhui Deli vs. Jinlong Machinery Electronic | Anhui Deli vs. Shenzhen Clou Electronics |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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