Correlation Between Shenzhen Noposion and Anhui Gujing
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By analyzing existing cross correlation between Shenzhen Noposion Agrochemicals and Anhui Gujing Distillery, you can compare the effects of market volatilities on Shenzhen Noposion 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 Shenzhen Noposion with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Noposion and Anhui Gujing.
Diversification Opportunities for Shenzhen Noposion and Anhui Gujing
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and Anhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Noposion Agrochemical 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 Shenzhen Noposion 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 Shenzhen Noposion Agrochemicals 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 Shenzhen Noposion i.e., Shenzhen Noposion and Anhui Gujing go up and down completely randomly.
Pair Corralation between Shenzhen Noposion and Anhui Gujing
Assuming the 90 days trading horizon Shenzhen Noposion Agrochemicals is expected to generate 1.45 times more return on investment than Anhui Gujing. However, Shenzhen Noposion is 1.45 times more volatile than Anhui Gujing Distillery. It trades about 0.27 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.26 per unit of risk. If you would invest 934.00 in Shenzhen Noposion Agrochemicals on September 12, 2024 and sell it today you would earn a total of 137.00 from holding Shenzhen Noposion Agrochemicals or generate 14.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Noposion Agrochemical vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Shenzhen Noposion |
| Anhui Gujing Distillery |
Shenzhen Noposion and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Noposion and Anhui Gujing
The main advantage of trading using opposite Shenzhen Noposion and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Noposion 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.| Shenzhen Noposion vs. Zijin Mining Group | Shenzhen Noposion vs. Wanhua Chemical Group | Shenzhen Noposion vs. Baoshan Iron Steel | Shenzhen Noposion vs. Rongsheng Petrochemical Co |
| Anhui Gujing vs. Chengtun Mining Group | Anhui Gujing vs. Ye Chiu Metal | Anhui Gujing vs. Shenzhen Noposion Agrochemicals | Anhui Gujing vs. Shandong Mining Machinery |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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