Correlation Between Jilin Chemical and Jiugui Liquor
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By analyzing existing cross correlation between Jilin Chemical Fibre and Jiugui Liquor Co, you can compare the effects of market volatilities on Jilin Chemical 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 Jilin Chemical with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Chemical and Jiugui Liquor.
Diversification Opportunities for Jilin Chemical and Jiugui Liquor
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jilin and Jiugui is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Chemical Fibre and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Jilin Chemical 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 Jilin Chemical Fibre 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 Jilin Chemical i.e., Jilin Chemical and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Jilin Chemical and Jiugui Liquor
Assuming the 90 days trading horizon Jilin Chemical Fibre is expected to generate 0.84 times more return on investment than Jiugui Liquor. However, Jilin Chemical Fibre is 1.19 times less risky than Jiugui Liquor. It trades about -0.24 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.22 per unit of risk. If you would invest 395.00 in Jilin Chemical Fibre on October 20, 2024 and sell it today you would lose (46.00) from holding Jilin Chemical Fibre or give up 11.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Chemical Fibre vs. Jiugui Liquor Co
Performance |
| Timeline |
| Jilin Chemical Fibre |
| Jiugui Liquor |
Jilin Chemical and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Chemical and Jiugui Liquor
The main advantage of trading using opposite Jilin Chemical and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Chemical 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.| Jilin Chemical vs. Digiwin Software Co | Jilin Chemical vs. Wuhan Yangtze Communication | Jilin Chemical vs. Vontron Technology Co | Jilin Chemical vs. Tianshui Huatian Technology |
| Jiugui Liquor vs. Fujian Longzhou Transportation | Jiugui Liquor vs. Heilongjiang Transport Development | Jiugui Liquor vs. Songz Automobile Air | Jiugui Liquor vs. Hunan TV Broadcast |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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