Correlation Between Industrial and Anhui Deli
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By analyzing existing cross correlation between Industrial and Commercial and Anhui Deli Household, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anhui Deli.
Diversification Opportunities for Industrial and Anhui Deli
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Industrial and Anhui is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Anhui Deli go up and down completely randomly.
Pair Corralation between Industrial and Anhui Deli
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.38 times more return on investment than Anhui Deli. However, Industrial and Commercial is 2.61 times less risky than Anhui Deli. It trades about 0.09 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.0 per unit of risk. If you would invest 413.00 in Industrial and Commercial on November 27, 2024 and sell it today you would earn a total of 276.00 from holding Industrial and Commercial or generate 66.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Anhui Deli Household
Performance |
| Timeline |
| Industrial and Commercial |
| Anhui Deli Household |
Industrial and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Anhui Deli
The main advantage of trading using opposite Industrial and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Zhengzhou Coal Mining | Industrial vs. Tibet Huayu Mining | Industrial vs. Dhc Software Co | Industrial vs. Linewell Software Co |
| Anhui Deli vs. Kuang Chi Technologies | Anhui Deli vs. CICT Mobile Communication | Anhui Deli vs. iSoftStone Information Technology | Anhui Deli vs. Allwin Telecommunication Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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