Correlation Between Anhui Gujing and Jiangsu Xinri
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By analyzing existing cross correlation between Anhui Gujing Distillery and Jiangsu Xinri E Vehicle, you can compare the effects of market volatilities on Anhui Gujing and Jiangsu Xinri 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 Jiangsu Xinri. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jiangsu Xinri.
Diversification Opportunities for Anhui Gujing and Jiangsu Xinri
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Jiangsu is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Jiangsu Xinri E Vehicle in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinri E 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 Jiangsu Xinri. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinri E has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Jiangsu Xinri go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jiangsu Xinri
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.86 times more return on investment than Jiangsu Xinri. However, Anhui Gujing Distillery is 1.16 times less risky than Jiangsu Xinri. It trades about -0.03 of its potential returns per unit of risk. Jiangsu Xinri E Vehicle is currently generating about -0.04 per unit of risk. If you would invest 27,293 in Anhui Gujing Distillery on October 25, 2024 and sell it today you would lose (10,323) from holding Anhui Gujing Distillery or give up 37.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Jiangsu Xinri E Vehicle
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Jiangsu Xinri E |
Anhui Gujing and Jiangsu Xinri Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Jiangsu Xinri
The main advantage of trading using opposite Anhui Gujing and Jiangsu Xinri positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Jiangsu Xinri 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 Jiangsu Xinri will offset losses from the drop in Jiangsu Xinri's long position.| Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Postal Savings Bank | Anhui Gujing vs. Bank of Communications | Anhui Gujing vs. China Merchants Bank |
| Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Gansu Jiu Steel | Jiangsu Xinri vs. Ming Yang Smart | Jiangsu Xinri vs. Aba Chemicals Corp |
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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