Correlation Between Anhui Gujing and Longmaster Information
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By analyzing existing cross correlation between Anhui Gujing Distillery and Longmaster Information Tech, you can compare the effects of market volatilities on Anhui Gujing and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Longmaster Information.
Diversification Opportunities for Anhui Gujing and Longmaster Information
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Anhui and Longmaster is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Longmaster Information go up and down completely randomly.
Pair Corralation between Anhui Gujing and Longmaster Information
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.81 times more return on investment than Longmaster Information. However, Anhui Gujing Distillery is 1.23 times less risky than Longmaster Information. It trades about -0.25 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about -0.52 per unit of risk. If you would invest 19,250 in Anhui Gujing Distillery on October 11, 2024 and sell it today you would lose (2,294) from holding Anhui Gujing Distillery or give up 11.92% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Longmaster Information Tech
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Longmaster Information |
Anhui Gujing and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Longmaster Information
The main advantage of trading using opposite Anhui Gujing and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Anhui Gujing vs. Longjian Road Bridge | Anhui Gujing vs. Mingchen Health Co | Anhui Gujing vs. Xinjiang Beixin RoadBridge | Anhui Gujing vs. Meinian Onehealth Healthcare |
| Longmaster Information vs. Omnijoi Media Corp | Longmaster Information vs. Guilin Seamild Foods | Longmaster Information vs. Shuhua Sports Co | Longmaster Information vs. Great Sun Foods Co |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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