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
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chahua and Anhui is -0.31. 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 under-perform the Anhui Deli. But the stock apears to be less risky and, when comparing its historical volatility, Chahua Modern Housewares is 1.65 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 0.02 of returns per unit of risk over similar time horizon. If you would invest 411.00 in Anhui Deli Household on November 3, 2024 and sell it today you would lose (3.00) from holding Anhui Deli Household or give up 0.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| 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. Yingde Greatchem Chemicals | Chahua Modern vs. Shandong Polymer Biochemicals | Chahua Modern vs. Shaanxi Meineng Clean | Chahua Modern vs. TongFu Microelectronics Co |
| Anhui Deli vs. Guangzhou Dongfang Hotel | Anhui Deli vs. Shenzhen Noposion Agrochemicals | Anhui Deli vs. BTG Hotels Group | Anhui Deli vs. Xilong Chemical 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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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