Correlation Between Anhui Gujing and Chongqing Gas
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By analyzing existing cross correlation between Anhui Gujing Distillery and Chongqing Gas Grp, you can compare the effects of market volatilities on Anhui Gujing and Chongqing Gas 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 Chongqing Gas. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Chongqing Gas.
Diversification Opportunities for Anhui Gujing and Chongqing Gas
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Chongqing is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Chongqing Gas Grp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Gas Grp 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 Chongqing Gas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Gas Grp has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Chongqing Gas go up and down completely randomly.
Pair Corralation between Anhui Gujing and Chongqing Gas
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Chongqing Gas. In addition to that, Anhui Gujing is 1.54 times more volatile than Chongqing Gas Grp. It trades about -0.02 of its total potential returns per unit of risk. Chongqing Gas Grp is currently generating about -0.02 per unit of volatility. If you would invest 750.00 in Chongqing Gas Grp on September 12, 2024 and sell it today you would lose (113.00) from holding Chongqing Gas Grp or give up 15.07% 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. Chongqing Gas Grp
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Chongqing Gas Grp |
Anhui Gujing and Chongqing Gas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Chongqing Gas
The main advantage of trading using opposite Anhui Gujing and Chongqing Gas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Chongqing Gas 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 Chongqing Gas will offset losses from the drop in Chongqing Gas' long position.| Anhui Gujing vs. China Petroleum Chemical | Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. China State Construction | Anhui Gujing vs. China Railway Group |
| Chongqing Gas vs. Lander Sports Development | Chongqing Gas vs. Linewell Software Co | Chongqing Gas vs. Anhui Gujing Distillery | Chongqing Gas vs. Shenzhen Topway Video |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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