Correlation Between Anhui Huaheng and Jiugui Liquor
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By analyzing existing cross correlation between Anhui Huaheng Biotechnology and Jiugui Liquor Co, you can compare the effects of market volatilities on Anhui Huaheng 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 Huaheng with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaheng and Jiugui Liquor.
Diversification Opportunities for Anhui Huaheng and Jiugui Liquor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Anhui and Jiugui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaheng Biotechnology 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 Huaheng 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 Huaheng Biotechnology 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 Huaheng i.e., Anhui Huaheng and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Anhui Huaheng and Jiugui Liquor
Assuming the 90 days trading horizon Anhui Huaheng Biotechnology is expected to under-perform the Jiugui Liquor. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Huaheng Biotechnology is 1.22 times less risky than Jiugui Liquor. The stock trades about -0.59 of its potential returns per unit of risk. The Jiugui Liquor Co is currently generating about -0.36 of returns per unit of risk over similar time horizon. If you would invest 5,911 in Jiugui Liquor Co on October 11, 2024 and sell it today you would lose (1,149) from holding Jiugui Liquor Co or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaheng Biotechnology vs. Jiugui Liquor Co
Performance |
| Timeline |
| Anhui Huaheng Biotec |
| Jiugui Liquor |
Anhui Huaheng and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaheng and Jiugui Liquor
The main advantage of trading using opposite Anhui Huaheng and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaheng 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 Huaheng vs. Dareway Software Co | Anhui Huaheng vs. Jiangsu GDK Biotechnology | Anhui Huaheng vs. Guangdong Marubi Biotechnology | Anhui Huaheng vs. Glodon Software Co |
| Jiugui Liquor vs. Changchun BCHT Biotechnology | Jiugui Liquor vs. Anhui Huaheng Biotechnology | Jiugui Liquor vs. Sichuan Yahua Industrial | Jiugui Liquor vs. Ye Chiu Metal |
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.
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