Correlation Between Anhui Jianghuai and Jiugui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Anhui Jianghuai Automobile and Jiugui Liquor Co, you can compare the effects of market volatilities on Anhui Jianghuai and Jiugui Liquor 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 Jianghuai with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Jianghuai and Jiugui Liquor.
Diversification Opportunities for Anhui Jianghuai and Jiugui Liquor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and Jiugui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Jianghuai Automobile and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Anhui Jianghuai 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 Jianghuai Automobile are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Anhui Jianghuai i.e., Anhui Jianghuai and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Anhui Jianghuai and Jiugui Liquor
Assuming the 90 days trading horizon Anhui Jianghuai Automobile is expected to under-perform the Jiugui Liquor. In addition to that, Anhui Jianghuai is 1.38 times more volatile than Jiugui Liquor Co. It trades about -0.13 of its total potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.24 per unit of volatility. If you would invest 5,058 in Jiugui Liquor Co on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Jiugui Liquor Co or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Jianghuai Automobile vs. Jiugui Liquor Co
Performance |
| Timeline |
| Anhui Jianghuai Auto |
| Jiugui Liquor |
Anhui Jianghuai and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Jianghuai and Jiugui Liquor
The main advantage of trading using opposite Anhui Jianghuai and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Jianghuai position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Anhui Jianghuai vs. Sichuan Fulin Transportation | Anhui Jianghuai vs. Emdoor Information Co | Anhui Jianghuai vs. Longmaster Information Tech | Anhui Jianghuai vs. Jiangsu Jinling Sports |
| Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |