Correlation Between Advanced Technology and Anhui Deli
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By analyzing existing cross correlation between Advanced Technology Materials and Anhui Deli Household, you can compare the effects of market volatilities on Advanced Technology 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 Advanced Technology with a short position of Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advanced Technology and Anhui Deli.
Diversification Opportunities for Advanced Technology and Anhui Deli
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Advanced and Anhui is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Advanced Technology Materials 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 Advanced Technology 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 Advanced Technology Materials 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 Advanced Technology i.e., Advanced Technology and Anhui Deli go up and down completely randomly.
Pair Corralation between Advanced Technology and Anhui Deli
Assuming the 90 days trading horizon Advanced Technology Materials is expected to under-perform the Anhui Deli. In addition to that, Advanced Technology is 1.13 times more volatile than Anhui Deli Household. It trades about -0.28 of its total potential returns per unit of risk. Anhui Deli Household is currently generating about -0.04 per unit of volatility. If you would invest 481.00 in Anhui Deli Household on September 24, 2024 and sell it today you would lose (12.00) from holding Anhui Deli Household or give up 2.49% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Advanced Technology Materials vs. Anhui Deli Household
Performance |
Timeline |
Advanced Technology |
Anhui Deli Household |
Advanced Technology and Anhui Deli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Advanced Technology and Anhui Deli
The main advantage of trading using opposite Advanced Technology and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advanced Technology 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.Advanced Technology vs. Zijin Mining Group | Advanced Technology vs. Wanhua Chemical Group | Advanced Technology vs. Baoshan Iron Steel | Advanced Technology vs. Shandong Gold Mining |
Anhui Deli vs. BYD Co Ltd | Anhui Deli vs. China Mobile Limited | Anhui Deli vs. Agricultural Bank of | Anhui Deli vs. Industrial and Commercial |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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