Correlation Between Anhui Gujing and Songz Automobile
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By analyzing existing cross correlation between Anhui Gujing Distillery and Songz Automobile Air, you can compare the effects of market volatilities on Anhui Gujing and Songz Automobile 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 Songz Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Songz Automobile.
Diversification Opportunities for Anhui Gujing and Songz Automobile
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Songz is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Songz Automobile Air in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Songz Automobile Air 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 Songz Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Songz Automobile Air has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Songz Automobile go up and down completely randomly.
Pair Corralation between Anhui Gujing and Songz Automobile
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Songz Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.15 times less risky than Songz Automobile. The stock trades about -0.41 of its potential returns per unit of risk. The Songz Automobile Air is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 708.00 in Songz Automobile Air on October 14, 2024 and sell it today you would lose (84.00) from holding Songz Automobile Air or give up 11.86% 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. Songz Automobile Air
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Songz Automobile Air |
Anhui Gujing and Songz Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Songz Automobile
The main advantage of trading using opposite Anhui Gujing and Songz Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Songz Automobile 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 Songz Automobile will offset losses from the drop in Songz Automobile's long position.| Anhui Gujing vs. Ingenic Semiconductor | Anhui Gujing vs. Rising Nonferrous Metals | Anhui Gujing vs. Lontium Semiconductor Corp | Anhui Gujing vs. Will Semiconductor Co |
| Songz Automobile vs. Aurora Optoelectronics Co | Songz Automobile vs. Ningbo Kangqiang Electronics | Songz Automobile vs. Anhui Gujing Distillery | Songz Automobile vs. Leyard Optoelectronic |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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