Correlation Between Anhui Gujing and Aluminum Corp
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By analyzing existing cross correlation between Anhui Gujing Distillery and Aluminum Corp of, you can compare the effects of market volatilities on Anhui Gujing and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Aluminum Corp.
Diversification Opportunities for Anhui Gujing and Aluminum Corp
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Aluminum is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Aluminum Corp go up and down completely randomly.
Pair Corralation between Anhui Gujing and Aluminum Corp
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 1.12 times more return on investment than Aluminum Corp. However, Anhui Gujing is 1.12 times more volatile than Aluminum Corp of. It trades about -0.01 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.23 per unit of risk. If you would invest 19,035 in Anhui Gujing Distillery on August 25, 2024 and sell it today you would lose (335.00) from holding Anhui Gujing Distillery or give up 1.76% 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. Aluminum Corp of
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Aluminum Corp |
Anhui Gujing and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Aluminum Corp
The main advantage of trading using opposite Anhui Gujing and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Anhui Gujing vs. Aluminum Corp of | Anhui Gujing vs. COL Digital Publishing | Anhui Gujing vs. Shaanxi Meineng Clean | Anhui Gujing vs. Gansu Huangtai Wine marketing |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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