Correlation Between Anhui Gujing and City Development
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By analyzing existing cross correlation between Anhui Gujing Distillery and City Development Environment, you can compare the effects of market volatilities on Anhui Gujing and City Development 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 City Development. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and City Development.
Diversification Opportunities for Anhui Gujing and City Development
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and City is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and City Development Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on City Development Env 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 City Development. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of City Development Env has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and City Development go up and down completely randomly.
Pair Corralation between Anhui Gujing and City Development
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the City Development. In addition to that, Anhui Gujing is 1.05 times more volatile than City Development Environment. It trades about -0.01 of its total potential returns per unit of risk. City Development Environment is currently generating about 0.07 per unit of volatility. If you would invest 1,308 in City Development Environment on September 2, 2024 and sell it today you would earn a total of 45.00 from holding City Development Environment or generate 3.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. City Development Environment
Performance |
| Timeline |
| Anhui Gujing Distillery |
| City Development Env |
Anhui Gujing and City Development Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and City Development
The main advantage of trading using opposite Anhui Gujing and City Development positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, City Development 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 City Development will offset losses from the drop in City Development'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 |
| City Development vs. Zijin Mining Group | City Development vs. Wanhua Chemical Group | City Development vs. Baoshan Iron Steel | City Development vs. Shandong Gold Mining |
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.
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