Correlation Between China State and Anhui Deli
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By analyzing existing cross correlation between China State Construction and Anhui Deli Household, you can compare the effects of market volatilities on China State 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 China State with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of China State and Anhui Deli.
Diversification Opportunities for China State and Anhui Deli
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Anhui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding China State Construction 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 China State 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 China State Construction 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 China State i.e., China State and Anhui Deli go up and down completely randomly.
Pair Corralation between China State and Anhui Deli
Assuming the 90 days trading horizon China State Construction is expected to generate 0.39 times more return on investment than Anhui Deli. However, China State Construction is 2.56 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 -0.04 per unit of risk. If you would invest 589.00 in China State Construction on September 24, 2024 and sell it today you would earn a total of 11.00 from holding China State Construction or generate 1.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
China State Construction vs. Anhui Deli Household
Performance |
| Timeline |
| China State Construction |
| Anhui Deli Household |
China State and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China State and Anhui Deli
The main advantage of trading using opposite China State and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China State 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.| China State vs. Shenzhen Centralcon Investment | China State vs. Zoje Resources Investment | China State vs. Iat Automobile Technology | China State vs. Jiangsu Yueda Investment |
| Anhui Deli vs. BYD Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Industrial and Commercial |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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