Correlation Between Sunwoda Electronic and Anhui Gujing
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By analyzing existing cross correlation between Sunwoda Electronic and Anhui Gujing Distillery, you can compare the effects of market volatilities on Sunwoda Electronic 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 Sunwoda Electronic with a short position of Anhui Gujing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunwoda Electronic and Anhui Gujing.
Diversification Opportunities for Sunwoda Electronic and Anhui Gujing
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Sunwoda and Anhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Sunwoda Electronic 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 Sunwoda Electronic 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 Sunwoda Electronic 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 Sunwoda Electronic i.e., Sunwoda Electronic and Anhui Gujing go up and down completely randomly.
Pair Corralation between Sunwoda Electronic and Anhui Gujing
Assuming the 90 days trading horizon Sunwoda Electronic is expected to generate 1.26 times more return on investment than Anhui Gujing. However, Sunwoda Electronic is 1.26 times more volatile than Anhui Gujing Distillery. It trades about 0.14 of its potential returns per unit of risk. Anhui Gujing Distillery is currently generating about 0.08 per unit of risk. If you would invest 1,605 in Sunwoda Electronic on September 24, 2024 and sell it today you would earn a total of 679.00 from holding Sunwoda Electronic or generate 42.31% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 98.36% |
Values | Daily Returns |
Sunwoda Electronic vs. Anhui Gujing Distillery
Performance |
Timeline |
Sunwoda Electronic |
Anhui Gujing Distillery |
Sunwoda Electronic and Anhui Gujing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sunwoda Electronic and Anhui Gujing
The main advantage of trading using opposite Sunwoda Electronic and Anhui Gujing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunwoda Electronic 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.Sunwoda Electronic vs. Kweichow Moutai Co | Sunwoda Electronic vs. Contemporary Amperex Technology | Sunwoda Electronic vs. G bits Network Technology | Sunwoda Electronic vs. BYD Co Ltd |
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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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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