Correlation Between Allied Machinery and Anhui Gujing
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By analyzing existing cross correlation between Allied Machinery Co and Anhui Gujing Distillery, you can compare the effects of market volatilities on Allied Machinery 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 Allied Machinery with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Allied Machinery and Anhui Gujing.
Diversification Opportunities for Allied Machinery and Anhui Gujing
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Allied and Anhui is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Allied Machinery Co 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 Allied Machinery 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 Allied Machinery Co 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 Allied Machinery i.e., Allied Machinery and Anhui Gujing go up and down completely randomly.
Pair Corralation between Allied Machinery and Anhui Gujing
Assuming the 90 days trading horizon Allied Machinery Co is expected to generate 1.16 times more return on investment than Anhui Gujing. However, Allied Machinery is 1.16 times more volatile than Anhui Gujing Distillery. It trades about -0.01 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about -0.03 per unit of risk. If you would invest 2,686 in Allied Machinery Co on October 11, 2024 and sell it today you would lose (686.00) from holding Allied Machinery Co or give up 25.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Allied Machinery Co vs. Anhui Gujing Distillery
Performance |
| Timeline |
| Allied Machinery |
| Anhui Gujing Distillery |
Allied Machinery and Anhui Gujing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Allied Machinery and Anhui Gujing
The main advantage of trading using opposite Allied Machinery and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Allied Machinery 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.| Allied Machinery vs. Jinxiandai Information Industry | Allied Machinery vs. Longmaster Information Tech | Allied Machinery vs. Hangzhou Gisway Information | Allied Machinery vs. Shaanxi Construction Machinery |
| Anhui Gujing vs. Allied Machinery Co | Anhui Gujing vs. Western Metal Materials | Anhui Gujing vs. Gifore Agricultural Machinery | 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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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