Correlation Between Chahua Modern and Anhui Gujing
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By analyzing existing cross correlation between Chahua Modern Housewares and Anhui Gujing Distillery, you can compare the effects of market volatilities on Chahua Modern 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 Chahua Modern with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chahua Modern and Anhui Gujing.
Diversification Opportunities for Chahua Modern and Anhui Gujing
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chahua and Anhui is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Chahua Modern Housewares 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 Chahua Modern 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 Chahua Modern Housewares 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 Chahua Modern i.e., Chahua Modern and Anhui Gujing go up and down completely randomly.
Pair Corralation between Chahua Modern and Anhui Gujing
Assuming the 90 days trading horizon Chahua Modern Housewares is expected to under-perform the Anhui Gujing. In addition to that, Chahua Modern is 1.84 times more volatile than Anhui Gujing Distillery. It trades about -0.14 of its total potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.01 per unit of volatility. If you would invest 17,500 in Anhui Gujing Distillery on October 24, 2024 and sell it today you would lose (100.00) from holding Anhui Gujing Distillery or give up 0.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chahua Modern Housewares vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Chahua Modern Housewares |
| Anhui Gujing Distillery |
Chahua Modern and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chahua Modern and Anhui Gujing
The main advantage of trading using opposite Chahua Modern and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chahua Modern 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.| Chahua Modern vs. Hubei Forbon Technology | Chahua Modern vs. Guangdong Jingyi Metal | Chahua Modern vs. Tianshan Aluminum Group | Chahua Modern vs. 360 Security Technology |
| Anhui Gujing vs. China National Software | Anhui Gujing vs. Thunder Software Technology | Anhui Gujing vs. Western Metal Materials | Anhui Gujing vs. Guangzhou Tinci Materials |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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