Correlation Between Maoming Petro and Anhui Gujing
Specify exactly 2 symbols:
By analyzing existing cross correlation between Maoming Petro Chemical Shihua and Anhui Gujing Distillery, you can compare the effects of market volatilities on Maoming Petro and Anhui Gujing 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 Maoming Petro with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maoming Petro and Anhui Gujing.
Diversification Opportunities for Maoming Petro and Anhui Gujing
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Maoming and Anhui is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Maoming Petro Chemical Shihua and Anhui Gujing Distillery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Gujing Distillery and Maoming Petro 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 Maoming Petro Chemical Shihua are associated (or correlated) with Anhui Gujing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Gujing Distillery has no effect on the direction of Maoming Petro i.e., Maoming Petro and Anhui Gujing go up and down completely randomly.
Pair Corralation between Maoming Petro and Anhui Gujing
Assuming the 90 days trading horizon Maoming Petro Chemical Shihua is expected to under-perform the Anhui Gujing. In addition to that, Maoming Petro is 3.18 times more volatile than Anhui Gujing Distillery. It trades about -0.46 of its total potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.37 per unit of volatility. If you would invest 11,550 in Anhui Gujing Distillery on October 16, 2024 and sell it today you would lose (669.00) from holding Anhui Gujing Distillery or give up 5.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Maoming Petro Chemical Shihua vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Maoming Petro Chemical |
| Anhui Gujing Distillery |
Maoming Petro and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Maoming Petro and Anhui Gujing
The main advantage of trading using opposite Maoming Petro and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maoming Petro position performs unexpectedly, Anhui Gujing 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 Anhui Gujing will offset losses from the drop in Anhui Gujing's long position.| Maoming Petro vs. Shandong Rike Chemical | Maoming Petro vs. City Development Environment | Maoming Petro vs. Eit Environmental Development | Maoming Petro vs. Changjiang Jinggong Steel |
| Anhui Gujing vs. Eyebright Medical Technology | Anhui Gujing vs. ROPEOK Technology Group | Anhui Gujing vs. Zhejiang Qianjiang Motorcycle | Anhui Gujing vs. Soyea Technology Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |