Correlation Between Anhui Gujing and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Gujing Distillery and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Anhui Gujing and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Jiangxi JDL.
Diversification Opportunities for Anhui Gujing and Jiangxi JDL
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and Jiangxi is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Anhui Gujing and Jiangxi JDL
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Jiangxi JDL. In addition to that, Anhui Gujing is 1.09 times more volatile than Jiangxi JDL Environmental. It trades about -0.04 of its total potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about -0.01 per unit of volatility. If you would invest 1,302 in Jiangxi JDL Environmental on August 25, 2024 and sell it today you would lose (143.00) from holding Jiangxi JDL Environmental or give up 10.98% 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. Jiangxi JDL Environmental
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Jiangxi JDL Environmental |
Anhui Gujing and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Jiangxi JDL
The main advantage of trading using opposite Anhui Gujing and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
| Jiangxi JDL vs. Guizhou BroadcastingTV Info | Jiangxi JDL vs. Xizi Clean Energy | Jiangxi JDL vs. Longjian Road Bridge | Jiangxi JDL vs. XinJiang GuoTong Pipeline |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |