Correlation Between Anhui Gujing and Guangdong Wens
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By analyzing existing cross correlation between Anhui Gujing Distillery and Guangdong Wens Foodstuff, you can compare the effects of market volatilities on Anhui Gujing and Guangdong Wens 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 Wens. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Guangdong Wens.
Diversification Opportunities for Anhui Gujing and Guangdong Wens
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Guangdong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Guangdong Wens Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Wens Foodstuff 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 Wens. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Wens Foodstuff has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Guangdong Wens go up and down completely randomly.
Pair Corralation between Anhui Gujing and Guangdong Wens
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 1.32 times more return on investment than Guangdong Wens. However, Anhui Gujing is 1.32 times more volatile than Guangdong Wens Foodstuff. It trades about -0.04 of its potential returns per unit of risk. Guangdong Wens Foodstuff is currently generating about -0.07 per unit of risk. If you would invest 20,829 in Anhui Gujing Distillery on October 16, 2024 and sell it today you would lose (3,859) from holding Anhui Gujing Distillery or give up 18.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Guangdong Wens Foodstuff
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Guangdong Wens Foodstuff |
Anhui Gujing and Guangdong Wens Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Guangdong Wens
The main advantage of trading using opposite Anhui Gujing and Guangdong Wens positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Guangdong Wens 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 Wens will offset losses from the drop in Guangdong Wens' long position.| Anhui Gujing vs. Changchun UP Optotech | Anhui Gujing vs. Sharetronic Data Technology | Anhui Gujing vs. CGN Nuclear Technology | Anhui Gujing vs. Heilongjiang Transport Development |
| Guangdong Wens vs. Beijing Sanyuan Foods | Guangdong Wens vs. Guilin Seamild Foods | Guangdong Wens vs. Xiamen Jihong Package | Guangdong Wens vs. Jiahe Foods Industry |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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