Correlation Between Xinjiang Baodi and Anhui Deli
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By analyzing existing cross correlation between Xinjiang Baodi Mining and Anhui Deli Household, you can compare the effects of market volatilities on Xinjiang Baodi 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 Xinjiang Baodi with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinjiang Baodi and Anhui Deli.
Diversification Opportunities for Xinjiang Baodi and Anhui Deli
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Xinjiang and Anhui is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Xinjiang Baodi Mining 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 Xinjiang Baodi 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 Xinjiang Baodi Mining 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 Xinjiang Baodi i.e., Xinjiang Baodi and Anhui Deli go up and down completely randomly.
Pair Corralation between Xinjiang Baodi and Anhui Deli
Assuming the 90 days trading horizon Xinjiang Baodi Mining is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Xinjiang Baodi Mining is 1.74 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 | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xinjiang Baodi Mining vs. Anhui Deli Household
Performance |
| Timeline |
| Xinjiang Baodi Mining |
| Anhui Deli Household |
Xinjiang Baodi and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xinjiang Baodi and Anhui Deli
The main advantage of trading using opposite Xinjiang Baodi and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinjiang Baodi 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.| Xinjiang Baodi vs. Dr Peng Telecom | Xinjiang Baodi vs. Peoples Insurance of | Xinjiang Baodi vs. Iat Automobile Technology | Xinjiang Baodi vs. China Eastern Airlines |
| 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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