Correlation Between Jiugui Liquor and Xiangyang Automobile
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By analyzing existing cross correlation between Jiugui Liquor Co and Xiangyang Automobile Bearing, you can compare the effects of market volatilities on Jiugui Liquor and Xiangyang Automobile 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 Xiangyang Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Xiangyang Automobile.
Diversification Opportunities for Jiugui Liquor and Xiangyang Automobile
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiugui and Xiangyang is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Xiangyang Automobile Bearing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyang Automobile 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 Xiangyang Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyang Automobile has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Xiangyang Automobile go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Xiangyang Automobile
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 0.51 times more return on investment than Xiangyang Automobile. However, Jiugui Liquor Co is 1.95 times less risky than Xiangyang Automobile. It trades about -0.4 of its potential returns per unit of risk. Xiangyang Automobile Bearing is currently generating about -0.22 per unit of risk. If you would invest 5,972 in Jiugui Liquor Co on October 12, 2024 and sell it today you would lose (1,210) from holding Jiugui Liquor Co or give up 20.26% 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. Xiangyang Automobile Bearing
Performance |
| Timeline |
| Jiugui Liquor |
| Xiangyang Automobile |
Jiugui Liquor and Xiangyang Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Xiangyang Automobile
The main advantage of trading using opposite Jiugui Liquor and Xiangyang Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Xiangyang Automobile 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 Xiangyang Automobile will offset losses from the drop in Xiangyang Automobile's long position.| Jiugui Liquor vs. Changchun BCHT Biotechnology | Jiugui Liquor vs. Anhui Huaheng Biotechnology | Jiugui Liquor vs. Sichuan Yahua Industrial | Jiugui Liquor vs. Ye Chiu Metal |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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