Correlation Between Anhui Gujing and Shenzhen Glory
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By analyzing existing cross correlation between Anhui Gujing Distillery and Shenzhen Glory Medical, you can compare the effects of market volatilities on Anhui Gujing and Shenzhen Glory 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 Shenzhen Glory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Shenzhen Glory.
Diversification Opportunities for Anhui Gujing and Shenzhen Glory
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Shenzhen is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Shenzhen Glory Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Glory Medical 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 Shenzhen Glory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Glory Medical has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Shenzhen Glory go up and down completely randomly.
Pair Corralation between Anhui Gujing and Shenzhen Glory
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Shenzhen Glory. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.64 times less risky than Shenzhen Glory. The stock trades about -0.14 of its potential returns per unit of risk. The Shenzhen Glory Medical is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 338.00 in Shenzhen Glory Medical on October 30, 2024 and sell it today you would lose (33.00) from holding Shenzhen Glory Medical or give up 9.76% 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. Shenzhen Glory Medical
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Shenzhen Glory Medical |
Anhui Gujing and Shenzhen Glory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Shenzhen Glory
The main advantage of trading using opposite Anhui Gujing and Shenzhen Glory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Shenzhen Glory 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 Shenzhen Glory will offset losses from the drop in Shenzhen Glory'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 |
| Shenzhen Glory vs. MayAir Technology Co | Shenzhen Glory vs. Bank of Communications | Shenzhen Glory vs. Shandong Sinoglory Health | Shenzhen Glory vs. Nanjing Putian Telecommunications |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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