Correlation Between Zhongshan Public and Jinhui Liquor
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By analyzing existing cross correlation between Zhongshan Public Utilities and Jinhui Liquor Co, you can compare the effects of market volatilities on Zhongshan Public and Jinhui 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 Zhongshan Public with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongshan Public and Jinhui Liquor.
Diversification Opportunities for Zhongshan Public and Jinhui Liquor
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Zhongshan and Jinhui is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Zhongshan Public Utilities and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Zhongshan Public 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 Zhongshan Public Utilities are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Zhongshan Public i.e., Zhongshan Public and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Zhongshan Public and Jinhui Liquor
Assuming the 90 days trading horizon Zhongshan Public Utilities is expected to generate 0.68 times more return on investment than Jinhui Liquor. However, Zhongshan Public Utilities is 1.46 times less risky than Jinhui Liquor. It trades about 0.05 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 648.00 in Zhongshan Public Utilities on November 27, 2024 and sell it today you would earn a total of 236.00 from holding Zhongshan Public Utilities or generate 36.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongshan Public Utilities vs. Jinhui Liquor Co
Performance |
| Timeline |
| Zhongshan Public Uti |
| Jinhui Liquor |
Zhongshan Public and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongshan Public and Jinhui Liquor
The main advantage of trading using opposite Zhongshan Public and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongshan Public position performs unexpectedly, Jinhui 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Zhongshan Public vs. Guangzhou Shangpin Home | Zhongshan Public vs. Vohringer Home Technology | Zhongshan Public vs. Chongqing Sulian Plastic | Zhongshan Public vs. Nanya New Material |
| Jinhui Liquor vs. Fujian Newland Computer | Jinhui Liquor vs. Wintao Communications Co | Jinhui Liquor vs. Gansu Huangtai Wine marketing | Jinhui Liquor vs. Shanghai Shibei Hi Tech |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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