Correlation Between Anhui Gujing and Ningxia Baofeng
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Gujing Distillery and Ningxia Baofeng Energy, you can compare the effects of market volatilities on Anhui Gujing and Ningxia Baofeng 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 Ningxia Baofeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Ningxia Baofeng.
Diversification Opportunities for Anhui Gujing and Ningxia Baofeng
-0.41 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Ningxia is -0.41. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Ningxia Baofeng Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningxia Baofeng Energy 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 Ningxia Baofeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningxia Baofeng Energy has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Ningxia Baofeng go up and down completely randomly.
Pair Corralation between Anhui Gujing and Ningxia Baofeng
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Ningxia Baofeng. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.22 times less risky than Ningxia Baofeng. The stock trades about -0.05 of its potential returns per unit of risk. The Ningxia Baofeng Energy is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 1,654 in Ningxia Baofeng Energy on November 3, 2024 and sell it today you would earn a total of 99.00 from holding Ningxia Baofeng Energy or generate 5.99% 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. Ningxia Baofeng Energy
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Ningxia Baofeng Energy |
Anhui Gujing and Ningxia Baofeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Ningxia Baofeng
The main advantage of trading using opposite Anhui Gujing and Ningxia Baofeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Ningxia Baofeng 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 Ningxia Baofeng will offset losses from the drop in Ningxia Baofeng's long position.| Anhui Gujing vs. Eastroc Beverage Group | Anhui Gujing vs. UE Furniture Co | Anhui Gujing vs. Jiangsu Financial Leasing | Anhui Gujing vs. Ziel Home Furnishing |
| Ningxia Baofeng vs. Zhangjiagang Freetrade Science | Ningxia Baofeng vs. Jiangsu Yueda Investment | Ningxia Baofeng vs. Zhengping RoadBridge Constr | Ningxia Baofeng vs. Henan Shuanghui Investment |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |