Correlation Between Anhui Gujing and Puya Semiconductor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Anhui Gujing and Puya Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Anhui Gujing and Puya Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Anhui Gujing Distillery and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Anhui Gujing and Puya Semiconductor 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 Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Gujing and Puya Semiconductor.

Diversification Opportunities for Anhui Gujing and Puya Semiconductor

AnhuiPuyaDiversified AwayAnhuiPuyaDiversified Away100%
-0.6
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Anhui and Puya is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Gujing Distillery and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya Semiconductor 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 Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Anhui Gujing i.e., Anhui Gujing and Puya Semiconductor go up and down completely randomly.

Pair Corralation between Anhui Gujing and Puya Semiconductor

Assuming the 90 days trading horizon Anhui Gujing Distillery is expected to under-perform the Puya Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Anhui Gujing Distillery is 2.07 times less risky than Puya Semiconductor. The stock trades about -0.09 of its potential returns per unit of risk. The Puya Semiconductor Shanghai is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  8,734  in Puya Semiconductor Shanghai on October 26, 2024 and sell it today you would earn a total of  2,877  from holding Puya Semiconductor Shanghai or generate 32.94% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Anhui Gujing Distillery  vs.  Puya Semiconductor Shanghai

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 -10010203040
JavaScript chart by amCharts 3.21.15000596 688766
       Timeline  
Anhui Gujing Distillery 

Risk-Adjusted Performance

0 of 100

 
Weak
 
Strong
Very Weak
Over the last 90 days Anhui Gujing Distillery has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's basic indicators remain somewhat strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan170180190200210220
Puya Semiconductor 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Puya Semiconductor Shanghai are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Puya Semiconductor sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan8090100110120130

Anhui Gujing and Puya Semiconductor Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-3.95-2.96-1.97-0.980.01520.91.812.723.64 0.020.030.040.050.060.07
JavaScript chart by amCharts 3.21.15000596 688766
       Returns  

Pair Trading with Anhui Gujing and Puya Semiconductor

The main advantage of trading using opposite Anhui Gujing and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Gujing position performs unexpectedly, Puya Semiconductor 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor's long position.
The idea behind Anhui Gujing Distillery and Puya Semiconductor Shanghai pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Other Complementary Tools

Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Global Correlations
Find global opportunities by holding instruments from different markets
My Watchlist Analysis
Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like
Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Crypto Correlations
Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins