Correlation Between Changchun and Anhui Gujing
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By analyzing existing cross correlation between Changchun UP Optotech and Anhui Gujing Distillery, you can compare the effects of market volatilities on Changchun 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 Changchun with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun and Anhui Gujing.
Diversification Opportunities for Changchun and Anhui Gujing
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Changchun and Anhui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Changchun UP Optotech 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 Changchun 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 Changchun UP Optotech 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 Changchun i.e., Changchun and Anhui Gujing go up and down completely randomly.
Pair Corralation between Changchun and Anhui Gujing
Assuming the 90 days trading horizon Changchun UP Optotech is expected to under-perform the Anhui Gujing. In addition to that, Changchun is 1.52 times more volatile than Anhui Gujing Distillery. It trades about -0.09 of its total potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.05 per unit of volatility. If you would invest 16,954 in Anhui Gujing Distillery on October 30, 2024 and sell it today you would lose (346.00) from holding Anhui Gujing Distillery or give up 2.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun UP Optotech vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Changchun UP Optotech |
| Anhui Gujing Distillery |
Changchun and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun and Anhui Gujing
The main advantage of trading using opposite Changchun and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun 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.| Changchun vs. Wuhan Yangtze Communication | Changchun vs. Queclink Wireless Solutions | Changchun vs. Zotye Automobile Co | Changchun vs. Ningbo Fangzheng Automobile |
| Anhui Gujing vs. Guangxi Wuzhou Communications | Anhui Gujing vs. Nanjing Putian Telecommunications | Anhui Gujing vs. Tibet Huayu Mining | Anhui Gujing vs. Zhongshan Public Utilities |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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