Correlation Between Anhui Gujing and Guangzhou Shangpin
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By analyzing existing cross correlation between Anhui Gujing Distillery and Guangzhou Shangpin Home, you can compare the effects of market volatilities on Anhui Gujing and Guangzhou Shangpin 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 Guangzhou Shangpin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Guangzhou Shangpin.
Diversification Opportunities for Anhui Gujing and Guangzhou Shangpin
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Guangzhou is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Guangzhou Shangpin Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Shangpin Home 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 Guangzhou Shangpin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Shangpin Home has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Guangzhou Shangpin go up and down completely randomly.
Pair Corralation between Anhui Gujing and Guangzhou Shangpin
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.81 times more return on investment than Guangzhou Shangpin. However, Anhui Gujing Distillery is 1.24 times less risky than Guangzhou Shangpin. It trades about -0.1 of its potential returns per unit of risk. Guangzhou Shangpin Home is currently generating about -0.31 per unit of risk. If you would invest 17,615 in Anhui Gujing Distillery on October 25, 2024 and sell it today you would lose (645.00) from holding Anhui Gujing Distillery or give up 3.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Guangzhou Shangpin Home
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Guangzhou Shangpin Home |
Anhui Gujing and Guangzhou Shangpin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Guangzhou Shangpin
The main advantage of trading using opposite Anhui Gujing and Guangzhou Shangpin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Guangzhou Shangpin 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 Guangzhou Shangpin will offset losses from the drop in Guangzhou Shangpin's long position.| Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Postal Savings Bank | Anhui Gujing vs. Bank of Communications | Anhui Gujing vs. China Merchants Bank |
| Guangzhou Shangpin vs. PetroChina Co Ltd | Guangzhou Shangpin vs. Gansu Jiu Steel | Guangzhou Shangpin vs. Ming Yang Smart | Guangzhou Shangpin vs. Aba Chemicals Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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