Correlation Between Xiangpiaopiao Food and Anhui Deli
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By analyzing existing cross correlation between Xiangpiaopiao Food Co and Anhui Deli Household, you can compare the effects of market volatilities on Xiangpiaopiao Food 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 Xiangpiaopiao Food with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangpiaopiao Food and Anhui Deli.
Diversification Opportunities for Xiangpiaopiao Food and Anhui Deli
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Xiangpiaopiao and Anhui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Xiangpiaopiao Food Co 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 Xiangpiaopiao Food 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 Xiangpiaopiao Food Co 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 Xiangpiaopiao Food i.e., Xiangpiaopiao Food and Anhui Deli go up and down completely randomly.
Pair Corralation between Xiangpiaopiao Food and Anhui Deli
Assuming the 90 days trading horizon Xiangpiaopiao Food Co is expected to generate 1.33 times more return on investment than Anhui Deli. However, Xiangpiaopiao Food is 1.33 times more volatile than Anhui Deli Household. It trades about 0.16 of its potential returns per unit of risk. Anhui Deli Household is currently generating about 0.03 per unit of risk. If you would invest 1,089 in Xiangpiaopiao Food Co on September 25, 2024 and sell it today you would earn a total of 479.00 from holding Xiangpiaopiao Food Co or generate 43.99% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Xiangpiaopiao Food Co vs. Anhui Deli Household
Performance |
Timeline |
Xiangpiaopiao Food |
Anhui Deli Household |
Xiangpiaopiao Food and Anhui Deli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xiangpiaopiao Food and Anhui Deli
The main advantage of trading using opposite Xiangpiaopiao Food and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangpiaopiao Food 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.Xiangpiaopiao Food vs. Anhui Deli Household | Xiangpiaopiao Food vs. Lander Sports Development | Xiangpiaopiao Food vs. Ningbo Ligong Online | Xiangpiaopiao Food vs. Guangdong Jinma Entertainment |
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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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