Correlation Between Anhui Gujing and Guangdong Qunxing
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By analyzing existing cross correlation between Anhui Gujing Distillery and Guangdong Qunxing Toys, you can compare the effects of market volatilities on Anhui Gujing and Guangdong Qunxing 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 Guangdong Qunxing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Guangdong Qunxing.
Diversification Opportunities for Anhui Gujing and Guangdong Qunxing
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Guangdong is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Guangdong Qunxing Toys in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Qunxing Toys 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 Guangdong Qunxing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Qunxing Toys has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Guangdong Qunxing go up and down completely randomly.
Pair Corralation between Anhui Gujing and Guangdong Qunxing
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.44 times more return on investment than Guangdong Qunxing. However, Anhui Gujing Distillery is 2.27 times less risky than Guangdong Qunxing. It trades about -0.05 of its potential returns per unit of risk. Guangdong Qunxing Toys is currently generating about -0.29 per unit of risk. If you would invest 16,931 in Anhui Gujing Distillery on November 3, 2024 and sell it today you would lose (323.00) from holding Anhui Gujing Distillery or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Guangdong Qunxing Toys
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Guangdong Qunxing Toys |
Anhui Gujing and Guangdong Qunxing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Guangdong Qunxing
The main advantage of trading using opposite Anhui Gujing and Guangdong Qunxing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Guangdong Qunxing 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 Guangdong Qunxing will offset losses from the drop in Guangdong Qunxing's long position.| Anhui Gujing vs. Eastroc Beverage Group | Anhui Gujing vs. UE Furniture Co | Anhui Gujing vs. Jiangsu Financial Leasing | Anhui Gujing vs. Ziel Home Furnishing |
| Guangdong Qunxing vs. New China Life | Guangdong Qunxing vs. Ming Yang Smart | Guangdong Qunxing vs. 159681 | Guangdong Qunxing vs. 159005 |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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