Correlation Between Anhui Conch and Shenzhou International
Can any of the company-specific risk be diversified away by investing in both Anhui Conch and Shenzhou International 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 Shenzhou International 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 Shenzhou International Group, you can compare the effects of market volatilities on Anhui Conch and Shenzhou International 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 Shenzhou International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Conch and Shenzhou International.
Diversification Opportunities for Anhui Conch and Shenzhou International
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Anhui and Shenzhou is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Conch Cement and Shenzhou International Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhou International 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 Shenzhou International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhou International has no effect on the direction of Anhui Conch i.e., Anhui Conch and Shenzhou International go up and down completely randomly.
Pair Corralation between Anhui Conch and Shenzhou International
Assuming the 90 days horizon Anhui Conch Cement is expected to generate 0.83 times more return on investment than Shenzhou International. However, Anhui Conch Cement is 1.2 times less risky than Shenzhou International. It trades about -0.01 of its potential returns per unit of risk. Shenzhou International Group is currently generating about -0.02 per unit of risk. If you would invest 1,686 in Anhui Conch Cement on November 9, 2024 and sell it today you would lose (344.00) from holding Anhui Conch Cement or give up 20.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 85.16% |
| Values | Daily Returns |
Anhui Conch Cement vs. Shenzhou International Group
Performance |
| Timeline |
| Anhui Conch Cement |
| Shenzhou International |
Risk-Adjusted Performance
Insignificant
Weak | Strong |
Anhui Conch and Shenzhou International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Conch and Shenzhou International
The main advantage of trading using opposite Anhui Conch and Shenzhou International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Conch position performs unexpectedly, Shenzhou International 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 Shenzhou International will offset losses from the drop in Shenzhou International'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 |
| Shenzhou International vs. Unifi Inc | Shenzhou International vs. Culp Inc | Shenzhou International vs. ENN Energy Holdings | Shenzhou International vs. Anhui Conch Cement |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |