Correlation Between Chengdu Xingrong and Jiugui Liquor
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Jiugui Liquor Co, you can compare the effects of market volatilities on Chengdu Xingrong 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 Chengdu Xingrong with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Jiugui Liquor.
Diversification Opportunities for Chengdu Xingrong and Jiugui Liquor
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Chengdu and Jiugui is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Chengdu Xingrong 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 Chengdu Xingrong Investment 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 Chengdu Xingrong i.e., Chengdu Xingrong and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Jiugui Liquor
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.66 times more return on investment than Jiugui Liquor. However, Chengdu Xingrong Investment is 1.52 times less risky than Jiugui Liquor. It trades about 0.05 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.08 per unit of risk. If you would invest 478.00 in Chengdu Xingrong Investment on October 16, 2024 and sell it today you would earn a total of 205.00 from holding Chengdu Xingrong Investment or generate 42.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Jiugui Liquor Co
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Jiugui Liquor |
Chengdu Xingrong and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Jiugui Liquor
The main advantage of trading using opposite Chengdu Xingrong and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong 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.| Chengdu Xingrong vs. Shanghai Newtouch Software | Chengdu Xingrong vs. Thunder Software Technology | Chengdu Xingrong vs. Invengo Information Technology | Chengdu Xingrong vs. China National Software |
| Jiugui Liquor vs. MayAir Technology Co | Jiugui Liquor vs. Jiangsu Yueda Investment | Jiugui Liquor vs. Chengdu Xingrong Investment | Jiugui Liquor vs. Hainan Mining Co |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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