Correlation Between Jiaozuo Wanfang and Chongqing Brewery
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Chongqing Brewery Co, you can compare the effects of market volatilities on Jiaozuo Wanfang and Chongqing Brewery 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 Jiaozuo Wanfang with a short position of Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Chongqing Brewery.
Diversification Opportunities for Jiaozuo Wanfang and Chongqing Brewery
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiaozuo and Chongqing is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Chongqing Brewery
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 1.37 times more return on investment than Chongqing Brewery. However, Jiaozuo Wanfang is 1.37 times more volatile than Chongqing Brewery Co. It trades about 0.04 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about 0.0 per unit of risk. If you would invest 566.00 in Jiaozuo Wanfang Aluminum on September 14, 2024 and sell it today you would earn a total of 149.00 from holding Jiaozuo Wanfang Aluminum or generate 26.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Chongqing Brewery Co
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Chongqing Brewery |
Jiaozuo Wanfang and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Chongqing Brewery
The main advantage of trading using opposite Jiaozuo Wanfang and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Jiaozuo Wanfang vs. Zijin Mining Group | Jiaozuo Wanfang vs. Wanhua Chemical Group | Jiaozuo Wanfang vs. Baoshan Iron Steel | Jiaozuo Wanfang vs. Shandong Gold Mining |
| Chongqing Brewery vs. Jiaozuo Wanfang Aluminum | Chongqing Brewery vs. Keeson Technology Corp | Chongqing Brewery vs. Iat Automobile Technology | Chongqing Brewery vs. Holitech Technology 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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