Correlation Between Jiugui Liquor and Huatian Hotel
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By analyzing existing cross correlation between Jiugui Liquor Co and Huatian Hotel Group, you can compare the effects of market volatilities on Jiugui Liquor and Huatian Hotel 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 Jiugui Liquor with a short position of Huatian Hotel. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Huatian Hotel.
Diversification Opportunities for Jiugui Liquor and Huatian Hotel
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Huatian is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Huatian Hotel Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huatian Hotel Group and Jiugui Liquor 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 Jiugui Liquor Co are associated (or correlated) with Huatian Hotel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huatian Hotel Group has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Huatian Hotel go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Huatian Hotel
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.12 times more return on investment than Huatian Hotel. However, Jiugui Liquor is 1.12 times more volatile than Huatian Hotel Group. It trades about 0.07 of its potential returns per unit of risk. Huatian Hotel Group is currently generating about -0.01 per unit of risk. If you would invest 5,450 in Jiugui Liquor Co on August 28, 2024 and sell it today you would earn a total of 215.00 from holding Jiugui Liquor Co or generate 3.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Huatian Hotel Group
Performance |
| Timeline |
| Jiugui Liquor |
| Huatian Hotel Group |
Jiugui Liquor and Huatian Hotel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Huatian Hotel
The main advantage of trading using opposite Jiugui Liquor and Huatian Hotel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Huatian Hotel 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 Huatian Hotel will offset losses from the drop in Huatian Hotel's long position.| Jiugui Liquor vs. BYD Co Ltd | Jiugui Liquor vs. China Mobile Limited | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. Industrial and Commercial |
| Huatian Hotel vs. Guangdong Shenglu Telecommunication | Huatian Hotel vs. Zhongtong Guomai Communication | Huatian Hotel vs. Telling Telecommunication Holding | Huatian Hotel vs. Jilin Jlu Communication |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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