Correlation Between Anhui Gujing and Luzhou Lao
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By analyzing existing cross correlation between Anhui Gujing Distillery and Luzhou Lao Jiao, you can compare the effects of market volatilities on Anhui Gujing and Luzhou Lao 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 Gujing with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Luzhou Lao.
Diversification Opportunities for Anhui Gujing and Luzhou Lao
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Luzhou is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao and Anhui Gujing 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 Gujing Distillery are associated (or correlated) with Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Luzhou Lao go up and down completely randomly.
Pair Corralation between Anhui Gujing and Luzhou Lao
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.99 times more return on investment than Luzhou Lao. However, Anhui Gujing Distillery is 1.01 times less risky than Luzhou Lao. It trades about -0.02 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.02 per unit of risk. If you would invest 25,921 in Anhui Gujing Distillery on September 12, 2024 and sell it today you would lose (6,671) from holding Anhui Gujing Distillery or give up 25.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Luzhou Lao Jiao
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Luzhou Lao Jiao |
Anhui Gujing and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Luzhou Lao
The main advantage of trading using opposite Anhui Gujing and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| Anhui Gujing vs. China Petroleum Chemical | Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. China State Construction | Anhui Gujing vs. China Railway Group |
| Luzhou Lao vs. Nuode Investment Co | Luzhou Lao vs. Shenzhen Centralcon Investment | Luzhou Lao vs. Anhui Gujing Distillery | Luzhou Lao vs. Gansu Huangtai Wine marketing |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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