Correlation Between Anhui Deli and Westone Information
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By analyzing existing cross correlation between Anhui Deli Household and Westone Information Industry, you can compare the effects of market volatilities on Anhui Deli and Westone Information 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 Deli with a short position of Westone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Deli and Westone Information.
Diversification Opportunities for Anhui Deli and Westone Information
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Westone is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Deli Household and Westone Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westone Information and Anhui Deli 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 Deli Household are associated (or correlated) with Westone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westone Information has no effect on the direction of Anhui Deli i.e., Anhui Deli and Westone Information go up and down completely randomly.
Pair Corralation between Anhui Deli and Westone Information
Assuming the 90 days trading horizon Anhui Deli is expected to generate 7.59 times less return on investment than Westone Information. But when comparing it to its historical volatility, Anhui Deli Household is 1.04 times less risky than Westone Information. It trades about 0.01 of its potential returns per unit of risk. Westone Information Industry is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,435 in Westone Information Industry on September 26, 2024 and sell it today you would earn a total of 281.00 from holding Westone Information Industry or generate 19.58% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Deli Household vs. Westone Information Industry
Performance |
Timeline |
Anhui Deli Household |
Westone Information |
Anhui Deli and Westone Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Deli and Westone Information
The main advantage of trading using opposite Anhui Deli and Westone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Deli position performs unexpectedly, Westone Information 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 Westone Information will offset losses from the drop in Westone Information's long position.Anhui Deli vs. Tieling Newcity Investment | Anhui Deli vs. Hubei Geoway Investment | Anhui Deli vs. Hubei Xingfa Chemicals | Anhui Deli vs. Postal Savings Bank |
Westone Information vs. Industrial and Commercial | Westone Information vs. China Construction Bank | Westone Information vs. Agricultural Bank of | Westone Information 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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