Correlation Between Anhui Conch and PPC
Can any of the company-specific risk be diversified away by investing in both Anhui Conch and PPC at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anhui Conch and PPC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Conch Cement and PPC Ltd ADR, you can compare the effects of market volatilities on Anhui Conch and PPC 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 Anhui Conch with a short position of PPC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and PPC.
Diversification Opportunities for Anhui Conch and PPC
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and PPC is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and PPC Ltd ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PPC Ltd ADR and Anhui Conch 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 Anhui Conch Cement are associated (or correlated) with PPC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PPC Ltd ADR has no effect on the direction of Anhui Conch i.e., Anhui Conch and PPC go up and down completely randomly.
Pair Corralation between Anhui Conch and PPC
If you would invest 1,226 in Anhui Conch Cement on August 26, 2024 and sell it today you would earn a total of 98.00 from holding Anhui Conch Cement or generate 7.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 2.27% |
| Values | Daily Returns |
Anhui Conch Cement vs. PPC Ltd ADR
Performance |
| Timeline |
| Anhui Conch Cement |
| PPC Ltd ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Anhui Conch and PPC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and PPC
The main advantage of trading using opposite Anhui Conch and PPC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch position performs unexpectedly, PPC 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 PPC will offset losses from the drop in PPC's long position.| Anhui Conch vs. Buzzi Unicem SpA | Anhui Conch vs. Wienerberger Baustoffindustrie | Anhui Conch vs. Lafargeholcim Ltd ADR | Anhui Conch vs. HeidelbergCement AG ADR |
| PPC vs. Wienerberger Baustoffindustrie | PPC vs. China National Building | PPC vs. Anhui Conch Cement | PPC vs. Lafargeholcim Ltd ADR |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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