Correlation Between Anhui Gujing and Sichuan Jiuyuan
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By analyzing existing cross correlation between Anhui Gujing Distillery and Sichuan Jiuyuan Yinhai, you can compare the effects of market volatilities on Anhui Gujing and Sichuan Jiuyuan 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 Sichuan Jiuyuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Sichuan Jiuyuan.
Diversification Opportunities for Anhui Gujing and Sichuan Jiuyuan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Sichuan is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Sichuan Jiuyuan Yinhai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jiuyuan Yinhai 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 Sichuan Jiuyuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jiuyuan Yinhai has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Sichuan Jiuyuan go up and down completely randomly.
Pair Corralation between Anhui Gujing and Sichuan Jiuyuan
Assuming the 90 days trading horizon Anhui Gujing is expected to generate 1.66 times less return on investment than Sichuan Jiuyuan. But when comparing it to its historical volatility, Anhui Gujing Distillery is 1.27 times less risky than Sichuan Jiuyuan. It trades about 0.14 of its potential returns per unit of risk. Sichuan Jiuyuan Yinhai is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,304 in Sichuan Jiuyuan Yinhai on September 12, 2024 and sell it today you would earn a total of 762.00 from holding Sichuan Jiuyuan Yinhai or generate 58.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Sichuan Jiuyuan Yinhai
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Sichuan Jiuyuan Yinhai |
Anhui Gujing and Sichuan Jiuyuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Sichuan Jiuyuan
The main advantage of trading using opposite Anhui Gujing and Sichuan Jiuyuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Sichuan Jiuyuan 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 Sichuan Jiuyuan will offset losses from the drop in Sichuan Jiuyuan's long position.| Anhui Gujing vs. Longjian Road Bridge | Anhui Gujing vs. Kunwu Jiuding Investment | Anhui Gujing vs. Harbin Hatou Investment | Anhui Gujing vs. Luyin Investment Group |
| Sichuan Jiuyuan vs. Sinofibers Technology Co | Sichuan Jiuyuan vs. JiShi Media Co | Sichuan Jiuyuan vs. Yuan Longping High tech | Sichuan Jiuyuan vs. Jiujiang Shanshui Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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