Correlation Between Guangzhou Automobile and Anhui Deli
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By analyzing existing cross correlation between Guangzhou Automobile Group and Anhui Deli Household, you can compare the effects of market volatilities on Guangzhou Automobile 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 Guangzhou Automobile with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Automobile and Anhui Deli.
Diversification Opportunities for Guangzhou Automobile and Anhui Deli
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Anhui is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Automobile Group 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 Guangzhou Automobile 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 Guangzhou Automobile Group 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 Guangzhou Automobile i.e., Guangzhou Automobile and Anhui Deli go up and down completely randomly.
Pair Corralation between Guangzhou Automobile and Anhui Deli
Assuming the 90 days trading horizon Guangzhou Automobile Group is expected to under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Guangzhou Automobile Group is 1.7 times less risky than Anhui Deli. The stock trades about -0.01 of its potential returns per unit of risk. The Anhui Deli Household is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 630.00 in Anhui Deli Household on September 14, 2024 and sell it today you would lose (89.00) from holding Anhui Deli Household or give up 14.13% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Automobile Group vs. Anhui Deli Household
Performance |
| Timeline |
| Guangzhou Automobile |
| Anhui Deli Household |
Guangzhou Automobile and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Automobile and Anhui Deli
The main advantage of trading using opposite Guangzhou Automobile and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Automobile 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.| Guangzhou Automobile vs. Henan Shuanghui Investment | Guangzhou Automobile vs. Hunan Investment Group | Guangzhou Automobile vs. Kunwu Jiuding Investment | Guangzhou Automobile vs. Harvest Fund Management |
| Anhui Deli vs. Industrial and Commercial | Anhui Deli vs. China Construction Bank | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Bank of China |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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