Correlation Between Jiugui Liquor and Hunan Investment
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By analyzing existing cross correlation between Jiugui Liquor Co and Hunan Investment Group, you can compare the effects of market volatilities on Jiugui Liquor and Hunan Investment 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 Hunan Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Hunan Investment.
Diversification Opportunities for Jiugui Liquor and Hunan Investment
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiugui and Hunan is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Hunan Investment Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Investment 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 Hunan Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Investment has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Hunan Investment go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Hunan Investment
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Hunan Investment. In addition to that, Jiugui Liquor is 1.1 times more volatile than Hunan Investment Group. It trades about -0.07 of its total potential returns per unit of risk. Hunan Investment Group is currently generating about 0.01 per unit of volatility. If you would invest 545.00 in Hunan Investment Group on October 29, 2024 and sell it today you would lose (25.00) from holding Hunan Investment Group or give up 4.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Hunan Investment Group
Performance |
| Timeline |
| Jiugui Liquor |
| Hunan Investment |
Jiugui Liquor and Hunan Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Hunan Investment
The main advantage of trading using opposite Jiugui Liquor and Hunan Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Hunan Investment 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 Hunan Investment will offset losses from the drop in Hunan Investment's long position.| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
| Hunan Investment vs. Marssenger Kitchenware Co | Hunan Investment vs. Fujian Anjoy Foods | Hunan Investment vs. Xinjiang Baodi Mining | Hunan Investment vs. Anhui Deli Household |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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