Correlation Between Anhui Gujing and Changchun
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By analyzing existing cross correlation between Anhui Gujing Distillery and Changchun UP Optotech, you can compare the effects of market volatilities on Anhui Gujing and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Changchun.
Diversification Opportunities for Anhui Gujing and Changchun
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Changchun is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Changchun go up and down completely randomly.
Pair Corralation between Anhui Gujing and Changchun
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.66 times more return on investment than Changchun. However, Anhui Gujing Distillery is 1.52 times less risky than Changchun. It trades about -0.05 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about -0.09 per unit of risk. If you would invest 16,954 in Anhui Gujing Distillery on October 30, 2024 and sell it today you would lose (346.00) from holding Anhui Gujing Distillery or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Changchun UP Optotech
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Changchun UP Optotech |
Anhui Gujing and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Changchun
The main advantage of trading using opposite Anhui Gujing and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Anhui Gujing vs. Guangxi Wuzhou Communications | Anhui Gujing vs. Nanjing Putian Telecommunications | Anhui Gujing vs. Tibet Huayu Mining | Anhui Gujing vs. Zhongshan Public Utilities |
| Changchun vs. Wuhan Yangtze Communication | Changchun vs. Queclink Wireless Solutions | Changchun vs. Zotye Automobile Co | Changchun vs. Ningbo Fangzheng Automobile |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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