Correlation Between Anhui Gujing and GreenTech Environmental
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By analyzing existing cross correlation between Anhui Gujing Distillery and GreenTech Environmental Co, you can compare the effects of market volatilities on Anhui Gujing and GreenTech Environmental 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 GreenTech Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and GreenTech Environmental.
Diversification Opportunities for Anhui Gujing and GreenTech Environmental
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and GreenTech is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and GreenTech Environmental Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GreenTech 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 GreenTech Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GreenTech Environmental has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and GreenTech Environmental go up and down completely randomly.
Pair Corralation between Anhui Gujing and GreenTech Environmental
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the GreenTech Environmental. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.12 times less risky than GreenTech Environmental. The stock trades about -0.01 of its potential returns per unit of risk. The GreenTech Environmental Co is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 1,323 in GreenTech Environmental Co on August 25, 2024 and sell it today you would earn a total of 241.00 from holding GreenTech Environmental Co or generate 18.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Anhui Gujing Distillery vs. GreenTech Environmental Co
Performance |
| Timeline |
| Anhui Gujing Distillery |
| GreenTech Environmental |
Anhui Gujing and GreenTech Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Gujing and GreenTech Environmental
The main advantage of trading using opposite Anhui Gujing and GreenTech Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, GreenTech Environmental 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 GreenTech Environmental will offset losses from the drop in GreenTech Environmental'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 |
| GreenTech Environmental vs. Shanghai Yaoji Playing | GreenTech Environmental vs. Huatian Hotel Group | GreenTech Environmental vs. Lander Sports Development | GreenTech Environmental vs. Jinling Hotel 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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