Correlation Between Anhui Gujing and Ningbo Ligong
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By analyzing existing cross correlation between Anhui Gujing Distillery and Ningbo Ligong Online, you can compare the effects of market volatilities on Anhui Gujing and Ningbo Ligong 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 Ningbo Ligong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Ningbo Ligong.
Diversification Opportunities for Anhui Gujing and Ningbo Ligong
0.15 | Correlation Coefficient |
Average diversification
The 3 months correlation between Anhui and Ningbo is 0.15. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Ningbo Ligong Online in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Ligong Online 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 Ningbo Ligong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Ligong Online has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Ningbo Ligong go up and down completely randomly.
Pair Corralation between Anhui Gujing and Ningbo Ligong
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Ningbo Ligong. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.1 times less risky than Ningbo Ligong. The stock trades about -0.04 of its potential returns per unit of risk. The Ningbo Ligong Online is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Ningbo Ligong Online on August 25, 2024 and sell it today you would earn a total of 245.00 from holding Ningbo Ligong Online or generate 22.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Ningbo Ligong Online
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Ningbo Ligong Online |
Anhui Gujing and Ningbo Ligong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Ningbo Ligong
The main advantage of trading using opposite Anhui Gujing and Ningbo Ligong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Ningbo Ligong 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 Ningbo Ligong will offset losses from the drop in Ningbo Ligong's long position.| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
| Ningbo Ligong vs. Hainan Mining Co | Ningbo Ligong vs. Offshore Oil Engineering | Ningbo Ligong vs. Jinhui Mining Co | Ningbo Ligong vs. Fujian Oriental Silver |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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