Correlation Between Jiugui Liquor and Changchun High
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By analyzing existing cross correlation between Jiugui Liquor Co and Changchun High New, you can compare the effects of market volatilities on Jiugui Liquor and Changchun High 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 Changchun High. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Changchun High.
Diversification Opportunities for Jiugui Liquor and Changchun High
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Changchun is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Changchun High New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun High New 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 Changchun High. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun High New has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Changchun High go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Changchun High
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Changchun High. In addition to that, Jiugui Liquor is 1.18 times more volatile than Changchun High New. It trades about -0.08 of its total potential returns per unit of risk. Changchun High New is currently generating about -0.06 per unit of volatility. If you would invest 19,894 in Changchun High New on October 15, 2024 and sell it today you would lose (10,701) from holding Changchun High New or give up 53.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Changchun High New
Performance |
| Timeline |
| Jiugui Liquor |
| Changchun High New |
Jiugui Liquor and Changchun High Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Changchun High
The main advantage of trading using opposite Jiugui Liquor and Changchun High positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Changchun High 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 Changchun High will offset losses from the drop in Changchun High's long position.| Jiugui Liquor vs. MayAir Technology Co | Jiugui Liquor vs. Jiangsu Yueda Investment | Jiugui Liquor vs. Chengdu Xingrong Investment | Jiugui Liquor vs. Hainan Mining Co |
| Changchun High vs. Maxvision Technology Corp | Changchun High vs. Kingsignal Technology Co | Changchun High vs. Bangyan Technology Co | Changchun High vs. Soyea 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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