Correlation Between King Strong and Anhui Deli
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By analyzing existing cross correlation between King Strong New Material and Anhui Deli Household, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Anhui Deli.
Diversification Opportunities for King Strong and Anhui Deli
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Anhui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Anhui Deli go up and down completely randomly.
Pair Corralation between King Strong and Anhui Deli
Assuming the 90 days trading horizon King Strong New Material is expected to under-perform the Anhui Deli. In addition to that, King Strong is 1.46 times more volatile than Anhui Deli Household. It trades about -0.08 of its total potential returns per unit of risk. Anhui Deli Household is currently generating about 0.11 per unit of volatility. If you would invest 502.00 in Anhui Deli Household on September 12, 2024 and sell it today you would earn a total of 28.00 from holding Anhui Deli Household or generate 5.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Anhui Deli Household
Performance |
| Timeline |
| King Strong New |
| Anhui Deli Household |
King Strong and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Anhui Deli
The main advantage of trading using opposite King Strong and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Agricultural Bank of | King Strong vs. Industrial and Commercial | King Strong vs. Bank of China | King Strong vs. PetroChina Co Ltd |
| Anhui Deli vs. Lutian Machinery Co | Anhui Deli vs. PetroChina Co Ltd | Anhui Deli vs. Bank of China | Anhui Deli vs. Gansu Jiu Steel |
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 CEOs Directory module to screen CEOs from public companies around the world.
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