Correlation Between Chongqing Brewery and Anhui Jianghuai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Anhui Jianghuai Automobile, you can compare the effects of market volatilities on Chongqing Brewery and Anhui Jianghuai 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 Chongqing Brewery with a short position of Anhui Jianghuai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Anhui Jianghuai.
Diversification Opportunities for Chongqing Brewery and Anhui Jianghuai
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chongqing and Anhui is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Anhui Jianghuai Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Jianghuai Auto and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with Anhui Jianghuai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Jianghuai Auto has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Anhui Jianghuai go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Anhui Jianghuai
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to under-perform the Anhui Jianghuai. But the stock apears to be less risky and, when comparing its historical volatility, Chongqing Brewery Co is 1.69 times less risky than Anhui Jianghuai. The stock trades about -0.03 of its potential returns per unit of risk. The Anhui Jianghuai Automobile is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,597 in Anhui Jianghuai Automobile on September 1, 2024 and sell it today you would earn a total of 1,914 from holding Anhui Jianghuai Automobile or generate 119.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Anhui Jianghuai Automobile
Performance |
| Timeline |
| Chongqing Brewery |
| Anhui Jianghuai Auto |
Chongqing Brewery and Anhui Jianghuai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Anhui Jianghuai
The main advantage of trading using opposite Chongqing Brewery and Anhui Jianghuai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Anhui Jianghuai 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 Jianghuai will offset losses from the drop in Anhui Jianghuai's long position.| Chongqing Brewery vs. BeiGene | Chongqing Brewery vs. Kweichow Moutai Co | Chongqing Brewery vs. Beijing Roborock Technology | Chongqing Brewery vs. G bits Network Technology |
| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings |