Correlation Between Kunwu Jiuding and Anhui Gujing
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By analyzing existing cross correlation between Kunwu Jiuding Investment and Anhui Gujing Distillery, you can compare the effects of market volatilities on Kunwu Jiuding 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 Kunwu Jiuding with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kunwu Jiuding and Anhui Gujing.
Diversification Opportunities for Kunwu Jiuding and Anhui Gujing
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Kunwu and Anhui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Kunwu Jiuding Investment 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 Kunwu Jiuding 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 Kunwu Jiuding Investment 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 Kunwu Jiuding i.e., Kunwu Jiuding and Anhui Gujing go up and down completely randomly.
Pair Corralation between Kunwu Jiuding and Anhui Gujing
Assuming the 90 days trading horizon Kunwu Jiuding Investment is expected to under-perform the Anhui Gujing. In addition to that, Kunwu Jiuding is 1.33 times more volatile than Anhui Gujing Distillery. It trades about -0.02 of its total potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.02 per unit of volatility. If you would invest 20,766 in Anhui Gujing Distillery on September 13, 2024 and sell it today you would lose (244.00) from holding Anhui Gujing Distillery or give up 1.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kunwu Jiuding Investment vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Kunwu Jiuding Investment |
| Anhui Gujing Distillery |
Kunwu Jiuding and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kunwu Jiuding and Anhui Gujing
The main advantage of trading using opposite Kunwu Jiuding and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kunwu Jiuding 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.| Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
| Anhui Gujing vs. China Life Insurance | Anhui Gujing vs. Cinda Securities Co | Anhui Gujing vs. Piotech Inc A | Anhui Gujing vs. Dongxing Sec 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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