Correlation Between Anhui Gujing and Western Superconducting
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By analyzing existing cross correlation between Anhui Gujing Distillery and Western Superconducting Tech, you can compare the effects of market volatilities on Anhui Gujing and Western Superconducting 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 Western Superconducting. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Western Superconducting.
Diversification Opportunities for Anhui Gujing and Western Superconducting
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Anhui and Western is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Western Superconducting Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Superconducting 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 Western Superconducting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Superconducting has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Western Superconducting go up and down completely randomly.
Pair Corralation between Anhui Gujing and Western Superconducting
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Western Superconducting. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.13 times less risky than Western Superconducting. The stock trades about -0.03 of its potential returns per unit of risk. The Western Superconducting Tech is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 6,826 in Western Superconducting Tech on October 16, 2024 and sell it today you would lose (2,628) from holding Western Superconducting Tech or give up 38.5% 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. Western Superconducting Tech
Performance |
Timeline |
Anhui Gujing Distillery |
Western Superconducting |
Anhui Gujing and Western Superconducting Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Gujing and Western Superconducting
The main advantage of trading using opposite Anhui Gujing and Western Superconducting positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Western Superconducting 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 Western Superconducting will offset losses from the drop in Western Superconducting's long position.Anhui Gujing vs. Guangdong Wens Foodstuff | Anhui Gujing vs. Anhui Xinhua Media | Anhui Gujing vs. Gan Yuan Foods | Anhui Gujing vs. Xiwang Foodstuffs Co |
Western Superconducting vs. Duzhe Publishing Media | Western Superconducting vs. Bank of Communications | Western Superconducting vs. Anhui Gujing Distillery | Western Superconducting vs. Tongyu Communication |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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