Correlation Between Chahua Modern and Anhui Deli
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By analyzing existing cross correlation between Chahua Modern Housewares and Anhui Deli Household, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Anhui Deli.
Diversification Opportunities for Chahua Modern and Anhui Deli
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chahua and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Anhui Deli go up and down completely randomly.
Pair Corralation between Chahua Modern and Anhui Deli
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to generate 1.34 times more return on investment than Anhui Deli. However, Chahua Modern is 1.34 times more volatile than Anhui Deli Household. It trades about 0.37 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.1 per unit of risk. If you would invest 1,229 in Chahua Modern Housewares on August 25, 2024 and sell it today you would earn a total of 1,139 from holding Chahua Modern Housewares or generate 92.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Anhui Deli Household
Performance |
| Timeline |
| Chahua Modern Housewares |
| Anhui Deli Household |
Chahua Modern and Anhui Deli Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Anhui Deli
The main advantage of trading using opposite Chahua Modern and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Xiangyang Automobile Bearing | Chahua Modern vs. Ligao Foods CoLtd | Chahua Modern vs. Xiamen Jihong Package | Chahua Modern vs. Yankershop Food Co |
| Anhui Deli vs. Hunan Investment Group | Anhui Deli vs. Shaanxi Energy Investment | Anhui Deli vs. Jiangsu Yueda Investment | Anhui Deli vs. Jiangsu Xinri E Vehicle |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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