Correlation Between Anhui Gujing and DR
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By analyzing existing cross correlation between Anhui Gujing Distillery and DR Limited, you can compare the effects of market volatilities on Anhui Gujing and DR 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 DR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and DR.
Diversification Opportunities for Anhui Gujing and DR
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and DR is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and DR Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DR Limited 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 DR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DR Limited has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and DR go up and down completely randomly.
Pair Corralation between Anhui Gujing and DR
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.81 times more return on investment than DR. However, Anhui Gujing Distillery is 1.23 times less risky than DR. It trades about -0.02 of its potential returns per unit of risk. DR Limited is currently generating about -0.04 per unit of risk. If you would invest 26,777 in Anhui Gujing Distillery on September 4, 2024 and sell it today you would lose (7,877) from holding Anhui Gujing Distillery or give up 29.42% 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. DR Limited
Performance |
| Timeline |
| Anhui Gujing Distillery |
| DR Limited |
Anhui Gujing and DR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and DR
The main advantage of trading using opposite Anhui Gujing and DR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, DR 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 DR will offset losses from the drop in DR's long position.| Anhui Gujing vs. Industrial and Commercial | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. China Construction Bank | Anhui Gujing vs. Bank of China |
| DR vs. Ligao Foods CoLtd | DR vs. Cultural Investment Holdings | DR vs. Harbin Hatou Investment | DR vs. Xiandai Investment 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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