Correlation Between Zhejiang Yayi and Anhui Deli
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By analyzing existing cross correlation between Zhejiang Yayi Metal and Anhui Deli Household, you can compare the effects of market volatilities on Zhejiang Yayi 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 Zhejiang Yayi with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yayi and Anhui Deli.
Diversification Opportunities for Zhejiang Yayi and Anhui Deli
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Anhui is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yayi Metal 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 Zhejiang Yayi 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 Zhejiang Yayi Metal 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 Zhejiang Yayi i.e., Zhejiang Yayi and Anhui Deli go up and down completely randomly.
Pair Corralation between Zhejiang Yayi and Anhui Deli
Assuming the 90 days trading horizon Zhejiang Yayi Metal is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Zhejiang Yayi Metal is 1.44 times less risky than Anhui Deli. The stock trades about -0.33 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Anhui Deli Household on October 16, 2024 and sell it today you would lose (46.00) from holding Anhui Deli Household or give up 8.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yayi Metal vs. Anhui Deli Household
Performance |
| Timeline |
| Zhejiang Yayi Metal |
| Anhui Deli Household |
Zhejiang Yayi and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yayi and Anhui Deli
The main advantage of trading using opposite Zhejiang Yayi and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yayi 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.| Zhejiang Yayi vs. Shannon Semiconductor Technology | Zhejiang Yayi vs. GigaDevice SemiconductorBeiji | Zhejiang Yayi vs. Suzhou Oriental Semiconductor | Zhejiang Yayi vs. Thinkon Semiconductor Jinzhou |
| Anhui Deli vs. Anji Foodstuff Co | Anhui Deli vs. HaiXin Foods Co | Anhui Deli vs. Yankershop Food Co | Anhui Deli vs. Eastern Air Logistics |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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