Correlation Between Anhui Gujing and Cangzhou Mingzhu
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By analyzing existing cross correlation between Anhui Gujing Distillery and Cangzhou Mingzhu Plastic, you can compare the effects of market volatilities on Anhui Gujing and Cangzhou Mingzhu 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 Cangzhou Mingzhu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Cangzhou Mingzhu.
Diversification Opportunities for Anhui Gujing and Cangzhou Mingzhu
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Cangzhou is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Cangzhou Mingzhu Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cangzhou Mingzhu Plastic has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Cangzhou Mingzhu go up and down completely randomly.
Pair Corralation between Anhui Gujing and Cangzhou Mingzhu
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 1.13 times more return on investment than Cangzhou Mingzhu. However, Anhui Gujing is 1.13 times more volatile than Cangzhou Mingzhu Plastic. It trades about -0.05 of its potential returns per unit of risk. Cangzhou Mingzhu Plastic is currently generating about -0.14 per unit of risk. If you would invest 16,931 in Anhui Gujing Distillery on November 3, 2024 and sell it today you would lose (323.00) from holding Anhui Gujing Distillery or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Cangzhou Mingzhu Plastic
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Cangzhou Mingzhu Plastic |
Anhui Gujing and Cangzhou Mingzhu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Cangzhou Mingzhu
The main advantage of trading using opposite Anhui Gujing and Cangzhou Mingzhu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Cangzhou Mingzhu 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 Cangzhou Mingzhu will offset losses from the drop in Cangzhou Mingzhu's long position.| Anhui Gujing vs. Eastroc Beverage Group | Anhui Gujing vs. UE Furniture Co | Anhui Gujing vs. Jiangsu Financial Leasing | Anhui Gujing vs. Ziel Home Furnishing |
| Cangzhou Mingzhu vs. YLZ Information Tech | Cangzhou Mingzhu vs. Tongling Nonferrous Metals | Cangzhou Mingzhu vs. Dawning Information Industry | Cangzhou Mingzhu vs. Shandong Hongchuang Aluminum |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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