Correlation Between Anhui Gujing and Cabio Biotech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Gujing Distillery and Cabio Biotech Wuhan, you can compare the effects of market volatilities on Anhui Gujing and Cabio Biotech 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 Cabio Biotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Cabio Biotech.
Diversification Opportunities for Anhui Gujing and Cabio Biotech
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Cabio is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Cabio Biotech Wuhan in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cabio Biotech Wuhan 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 Cabio Biotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cabio Biotech Wuhan has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Cabio Biotech go up and down completely randomly.
Pair Corralation between Anhui Gujing and Cabio Biotech
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to generate 0.65 times more return on investment than Cabio Biotech. However, Anhui Gujing Distillery is 1.54 times less risky than Cabio Biotech. It trades about 0.02 of its potential returns per unit of risk. Cabio Biotech Wuhan is currently generating about -0.01 per unit of risk. If you would invest 17,500 in Anhui Gujing Distillery on October 23, 2024 and sell it today you would earn a total of 88.00 from holding Anhui Gujing Distillery or generate 0.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. Cabio Biotech Wuhan
Performance |
| Timeline |
| Anhui Gujing Distillery |
| Cabio Biotech Wuhan |
Anhui Gujing and Cabio Biotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and Cabio Biotech
The main advantage of trading using opposite Anhui Gujing and Cabio Biotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Cabio Biotech 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 Cabio Biotech will offset losses from the drop in Cabio Biotech's long position.| Anhui Gujing vs. Ming Yang Smart | Anhui Gujing vs. 159681 | Anhui Gujing vs. 159005 | Anhui Gujing vs. Loctek Ergonomic Technology |
| Cabio Biotech vs. Jiangsu GDK Biotechnology | Cabio Biotech vs. Postal Savings Bank | Cabio Biotech vs. Hua Xia Bank | Cabio Biotech vs. Anhui Gujing Distillery |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |