Correlation Between Cangzhou Mingzhu and Anhui Gujing
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Anhui Gujing Distillery, you can compare the effects of market volatilities on Cangzhou Mingzhu 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 Cangzhou Mingzhu with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Anhui Gujing.
Diversification Opportunities for Cangzhou Mingzhu and Anhui Gujing
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cangzhou and Anhui is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic 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 Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Anhui Gujing go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Anhui Gujing
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to under-perform the Anhui Gujing. But the stock apears to be less risky and, when comparing its historical volatility, Cangzhou Mingzhu Plastic is 1.13 times less risky than Anhui Gujing. The stock trades about -0.14 of its potential returns per unit of risk. The Anhui Gujing Distillery is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 16,931 in Anhui Gujing Distillery on November 3, 2024 and sell it today you would lose (323.00) from holding Anhui Gujing Distillery or give up 1.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Anhui Gujing Distillery |
Cangzhou Mingzhu and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Anhui Gujing
The main advantage of trading using opposite Cangzhou Mingzhu and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu 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.| Cangzhou Mingzhu vs. YLZ Information Tech | Cangzhou Mingzhu vs. Tongling Nonferrous Metals | Cangzhou Mingzhu vs. Dawning Information Industry | Cangzhou Mingzhu vs. Shandong Hongchuang Aluminum |
| Anhui Gujing vs. Eastroc Beverage Group | Anhui Gujing vs. UE Furniture Co | Anhui Gujing vs. Jiangsu Financial Leasing | Anhui Gujing vs. Ziel Home Furnishing |
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 CEOs Directory module to screen CEOs from public companies around the world.
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