Correlation Between Anhui Gujing and Dongguan Tarry
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By analyzing existing cross correlation between Anhui Gujing Distillery and Dongguan Tarry Electronics, you can compare the effects of market volatilities on Anhui Gujing and Dongguan Tarry 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 Dongguan Tarry. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Dongguan Tarry.
Diversification Opportunities for Anhui Gujing and Dongguan Tarry
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Dongguan is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Dongguan Tarry Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dongguan Tarry Elect 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 Dongguan Tarry. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dongguan Tarry Elect has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Dongguan Tarry go up and down completely randomly.
Pair Corralation between Anhui Gujing and Dongguan Tarry
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Dongguan Tarry. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 2.18 times less risky than Dongguan Tarry. The stock trades about -0.25 of its potential returns per unit of risk. The Dongguan Tarry Electronics is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,302 in Dongguan Tarry Electronics on October 11, 2024 and sell it today you would earn a total of 238.00 from holding Dongguan Tarry Electronics or generate 3.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Dongguan Tarry Electronics
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Dongguan Tarry Elect |
Anhui Gujing and Dongguan Tarry Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Dongguan Tarry
The main advantage of trading using opposite Anhui Gujing and Dongguan Tarry positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Dongguan Tarry 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 Dongguan Tarry will offset losses from the drop in Dongguan Tarry'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 |
| Dongguan Tarry vs. Longjian Road Bridge | Dongguan Tarry vs. Hubeiyichang Transportation Group | Dongguan Tarry vs. Citic Guoan Wine | Dongguan Tarry vs. Anhui Gujing Distillery |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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