Correlation Between Anhui Huilong and Guangzhou Zhujiang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Huilong Agricultural and Guangzhou Zhujiang Brewery, you can compare the effects of market volatilities on Anhui Huilong and Guangzhou Zhujiang 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 Huilong with a short position of Guangzhou Zhujiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huilong and Guangzhou Zhujiang.
Diversification Opportunities for Anhui Huilong and Guangzhou Zhujiang
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Guangzhou is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huilong Agricultural and Guangzhou Zhujiang Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Zhujiang and Anhui Huilong 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 Huilong Agricultural are associated (or correlated) with Guangzhou Zhujiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Zhujiang has no effect on the direction of Anhui Huilong i.e., Anhui Huilong and Guangzhou Zhujiang go up and down completely randomly.
Pair Corralation between Anhui Huilong and Guangzhou Zhujiang
Assuming the 90 days trading horizon Anhui Huilong is expected to generate 1.17 times less return on investment than Guangzhou Zhujiang. In addition to that, Anhui Huilong is 1.61 times more volatile than Guangzhou Zhujiang Brewery. It trades about 0.03 of its total potential returns per unit of risk. Guangzhou Zhujiang Brewery is currently generating about 0.06 per unit of volatility. If you would invest 776.00 in Guangzhou Zhujiang Brewery on September 14, 2024 and sell it today you would earn a total of 203.00 from holding Guangzhou Zhujiang Brewery or generate 26.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huilong Agricultural vs. Guangzhou Zhujiang Brewery
Performance |
| Timeline |
| Anhui Huilong Agricu |
| Guangzhou Zhujiang |
Anhui Huilong and Guangzhou Zhujiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huilong and Guangzhou Zhujiang
The main advantage of trading using opposite Anhui Huilong and Guangzhou Zhujiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huilong position performs unexpectedly, Guangzhou Zhujiang 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 Guangzhou Zhujiang will offset losses from the drop in Guangzhou Zhujiang's long position.| Anhui Huilong vs. Zijin Mining Group | Anhui Huilong vs. Wanhua Chemical Group | Anhui Huilong vs. Baoshan Iron Steel | Anhui Huilong vs. Shandong Gold Mining |
| Guangzhou Zhujiang vs. Industrial and Commercial | Guangzhou Zhujiang vs. Kweichow Moutai Co | Guangzhou Zhujiang vs. Agricultural Bank of | Guangzhou Zhujiang vs. China Mobile Limited |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |