Correlation Between INKON Life and Anhui Deli
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By analyzing existing cross correlation between INKON Life Technology and Anhui Deli Household, you can compare the effects of market volatilities on INKON Life 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 INKON Life with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Anhui Deli.
Diversification Opportunities for INKON Life and Anhui Deli
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between INKON and Anhui is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology 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 INKON Life 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 INKON Life Technology 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 INKON Life i.e., INKON Life and Anhui Deli go up and down completely randomly.
Pair Corralation between INKON Life and Anhui Deli
Assuming the 90 days trading horizon INKON Life Technology is expected to generate 0.63 times more return on investment than Anhui Deli. However, INKON Life Technology is 1.6 times less risky than Anhui Deli. It trades about -0.11 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.23 per unit of risk. If you would invest 986.00 in INKON Life Technology on September 29, 2024 and sell it today you would lose (48.00) from holding INKON Life Technology or give up 4.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
INKON Life Technology vs. Anhui Deli Household
Performance |
| Timeline |
| INKON Life Technology |
| Anhui Deli Household |
INKON Life and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with INKON Life and Anhui Deli
The main advantage of trading using opposite INKON Life and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life 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.| INKON Life vs. Cultural Investment Holdings | INKON Life vs. Gome Telecom Equipment | INKON Life vs. Bus Online Co | INKON Life vs. Holitech Technology Co |
| Anhui Deli vs. BYD Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Agricultural Bank of | Anhui Deli 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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