Correlation Between Anhui Gujing and Soyea Technology
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By analyzing existing cross correlation between Anhui Gujing Distillery and Soyea Technology Co, you can compare the effects of market volatilities on Anhui Gujing and Soyea Technology 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 Soyea Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Soyea Technology.
Diversification Opportunities for Anhui Gujing and Soyea Technology
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Anhui and Soyea is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Soyea Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Soyea Technology 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 Soyea Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Soyea Technology has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Soyea Technology go up and down completely randomly.
Pair Corralation between Anhui Gujing and Soyea Technology
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.85 times more return on investment than Soyea Technology. However, Anhui Gujing Distillery is 1.17 times less risky than Soyea Technology. It trades about -0.04 of its potential returns per unit of risk. Soyea Technology Co is currently generating about -0.04 per unit of risk. If you would invest 28,010 in Anhui Gujing Distillery on October 29, 2024 and sell it today you would lose (11,339) from holding Anhui Gujing Distillery or give up 40.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Soyea Technology Co
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Soyea Technology |
Anhui Gujing and Soyea Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Soyea Technology
The main advantage of trading using opposite Anhui Gujing and Soyea Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Soyea Technology 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 Soyea Technology will offset losses from the drop in Soyea Technology's long position.| Anhui Gujing vs. Jiahe Foods Industry | Anhui Gujing vs. Double Medical Technology | Anhui Gujing vs. Allmed Medical Products | Anhui Gujing vs. APT Medical |
| Soyea Technology vs. Malion New Materials | Soyea Technology vs. Guangzhou Automobile Group | Soyea Technology vs. CIMC Vehicles Co | Soyea Technology vs. Zhejiang Qianjiang Motorcycle |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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