Correlation Between Anhui Gujing and Wuhan Yangtze
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By analyzing existing cross correlation between Anhui Gujing Distillery and Wuhan Yangtze Communication, you can compare the effects of market volatilities on Anhui Gujing and Wuhan Yangtze 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 Gujing with a short position of Wuhan Yangtze. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Wuhan Yangtze.
Diversification Opportunities for Anhui Gujing and Wuhan Yangtze
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Anhui and Wuhan is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Wuhan Yangtze Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Yangtze Commun and Anhui Gujing 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 Gujing Distillery are associated (or correlated) with Wuhan Yangtze. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Yangtze Commun has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Wuhan Yangtze go up and down completely randomly.
Pair Corralation between Anhui Gujing and Wuhan Yangtze
Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Wuhan Yangtze. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 1.5 times less risky than Wuhan Yangtze. The stock trades about -0.04 of its potential returns per unit of risk. The Wuhan Yangtze Communication is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,961 in Wuhan Yangtze Communication on September 26, 2024 and sell it today you would earn a total of 452.00 from holding Wuhan Yangtze Communication or generate 23.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Gujing Distillery vs. Wuhan Yangtze Communication
Performance |
Timeline |
Anhui Gujing Distillery |
Wuhan Yangtze Commun |
Anhui Gujing and Wuhan Yangtze Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Gujing and Wuhan Yangtze
The main advantage of trading using opposite Anhui Gujing and Wuhan Yangtze positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Wuhan Yangtze 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 Wuhan Yangtze will offset losses from the drop in Wuhan Yangtze's long position.Anhui Gujing vs. PetroChina Co Ltd | Anhui Gujing vs. China Mobile Limited | Anhui Gujing vs. CNOOC Limited | Anhui Gujing vs. Ping An Insurance |
Wuhan Yangtze vs. Eastern Air Logistics | Wuhan Yangtze vs. Hengli Industrial Development | Wuhan Yangtze vs. Anhui Gujing Distillery | Wuhan Yangtze vs. Qingdao Choho Industrial |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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