Correlation Between Anhui Gujing and Guangzhou KingTeller
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By analyzing existing cross correlation between Anhui Gujing Distillery and Guangzhou KingTeller Technology, you can compare the effects of market volatilities on Anhui Gujing and Guangzhou KingTeller 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 Guangzhou KingTeller. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Guangzhou KingTeller.
Diversification Opportunities for Anhui Gujing and Guangzhou KingTeller
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Guangzhou KingTeller Technolog in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou KingTeller 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 Guangzhou KingTeller. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou KingTeller has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Guangzhou KingTeller go up and down completely randomly.
Pair Corralation between Anhui Gujing and Guangzhou KingTeller
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Guangzhou KingTeller. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.19 times less risky than Guangzhou KingTeller. The stock trades about -0.05 of its potential returns per unit of risk. The Guangzhou KingTeller Technology is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 325.00 in Guangzhou KingTeller Technology on August 31, 2024 and sell it today you would earn a total of 173.00 from holding Guangzhou KingTeller Technology or generate 53.23% 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. Guangzhou KingTeller Technolog
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Guangzhou KingTeller |
Anhui Gujing and Guangzhou KingTeller Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Guangzhou KingTeller
The main advantage of trading using opposite Anhui Gujing and Guangzhou KingTeller positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Guangzhou KingTeller 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 Guangzhou KingTeller will offset losses from the drop in Guangzhou KingTeller's long position.| Anhui Gujing vs. Lutian Machinery Co | Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. Bank of China | Anhui Gujing vs. Gansu Jiu Steel |
| Guangzhou KingTeller vs. Kweichow Moutai Co | Guangzhou KingTeller vs. NAURA Technology Group | Guangzhou KingTeller vs. APT Medical | Guangzhou KingTeller vs. Contemporary Amperex Technology |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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