Correlation Between Industrial and Anhui Gujing
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By analyzing existing cross correlation between Industrial and Commercial and Anhui Gujing Distillery, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Anhui Gujing.
Diversification Opportunities for Industrial and Anhui Gujing
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Industrial and Anhui is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Anhui Gujing go up and down completely randomly.
Pair Corralation between Industrial and Anhui Gujing
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.33 times more return on investment than Anhui Gujing. However, Industrial and Commercial is 3.06 times less risky than Anhui Gujing. It trades about 0.07 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.06 per unit of risk. If you would invest 607.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 9.00 from holding Industrial and Commercial or generate 1.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Industrial and Commercial |
| Anhui Gujing Distillery |
Industrial and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Anhui Gujing
The main advantage of trading using opposite Industrial and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Allwin Telecommunication Co | Industrial vs. SUNSEA Telecommunications Co | Industrial vs. Guangzhou Haige Communications | Industrial vs. Nanjing Putian Telecommunications |
| Anhui Gujing vs. BYD Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. Agricultural Bank of | Anhui Gujing vs. Industrial and Commercial |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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