Correlation Between Shanghai Shuixing and Anhui Deli
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Shuixing Home and Anhui Deli Household, you can compare the effects of market volatilities on Shanghai Shuixing 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 Shanghai Shuixing with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shuixing and Anhui Deli.
Diversification Opportunities for Shanghai Shuixing and Anhui Deli
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Anhui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shuixing Home 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 Shanghai Shuixing 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 Shanghai Shuixing Home 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 Shanghai Shuixing i.e., Shanghai Shuixing and Anhui Deli go up and down completely randomly.
Pair Corralation between Shanghai Shuixing and Anhui Deli
Assuming the 90 days trading horizon Shanghai Shuixing Home is expected to generate 1.06 times more return on investment than Anhui Deli. However, Shanghai Shuixing is 1.06 times more volatile than Anhui Deli Household. It trades about 0.22 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.15 per unit of risk. If you would invest 1,107 in Shanghai Shuixing Home on September 12, 2024 and sell it today you would earn a total of 533.00 from holding Shanghai Shuixing Home or generate 48.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Shanghai Shuixing Home vs. Anhui Deli Household
Performance |
| Timeline |
| Shanghai Shuixing Home |
| Anhui Deli Household |
Shanghai Shuixing and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shuixing and Anhui Deli
The main advantage of trading using opposite Shanghai Shuixing and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shuixing 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.| Shanghai Shuixing vs. Nanjing Putian Telecommunications | Shanghai Shuixing vs. Tianjin Realty Development | Shanghai Shuixing vs. Kangyue Technology Co | Shanghai Shuixing vs. Shenzhen Hifuture Electric |
| 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |