Correlation Between Anhui Tongguan and Guangxi Wuzhou
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By analyzing existing cross correlation between Anhui Tongguan Copper and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on Anhui Tongguan and Guangxi Wuzhou 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 Tongguan with a short position of Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Tongguan and Guangxi Wuzhou.
Diversification Opportunities for Anhui Tongguan and Guangxi Wuzhou
-0.24 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Anhui and Guangxi is -0.24. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Tongguan Copper and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu and Anhui Tongguan 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 Tongguan Copper are associated (or correlated) with Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of Anhui Tongguan i.e., Anhui Tongguan and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between Anhui Tongguan and Guangxi Wuzhou
Assuming the 90 days trading horizon Anhui Tongguan Copper is expected to under-perform the Guangxi Wuzhou. In addition to that, Anhui Tongguan is 1.23 times more volatile than Guangxi Wuzhou Communications. It trades about 0.0 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.04 per unit of volatility. If you would invest 342.00 in Guangxi Wuzhou Communications on October 14, 2024 and sell it today you would earn a total of 115.00 from holding Guangxi Wuzhou Communications or generate 33.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Tongguan Copper vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| Anhui Tongguan Copper |
| Guangxi Wuzhou Commu |
Anhui Tongguan and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Tongguan and Guangxi Wuzhou
The main advantage of trading using opposite Anhui Tongguan and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Tongguan position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou's long position.| Anhui Tongguan vs. Semiconductor Manufacturing Intl | Anhui Tongguan vs. Puya Semiconductor Shanghai | Anhui Tongguan vs. Yuanjie Semiconductor Technology | Anhui Tongguan vs. Qtone Education Group |
| Guangxi Wuzhou vs. Anhui Tongguan Copper | Guangxi Wuzhou vs. Guocheng Mining Co | Guangxi Wuzhou vs. Chengdu Spaceon Electronics | Guangxi Wuzhou vs. Hainan Mining 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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