Correlation Between Jiugui Liquor and Yunnan Copper
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By analyzing existing cross correlation between Jiugui Liquor Co and Yunnan Copper Co, you can compare the effects of market volatilities on Jiugui Liquor and Yunnan Copper 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 Yunnan Copper. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Yunnan Copper.
Diversification Opportunities for Jiugui Liquor and Yunnan Copper
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiugui and Yunnan is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Yunnan Copper Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Copper 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 Yunnan Copper. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Copper has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Yunnan Copper go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Yunnan Copper
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Yunnan Copper. In addition to that, Jiugui Liquor is 1.45 times more volatile than Yunnan Copper Co. It trades about -0.25 of its total potential returns per unit of risk. Yunnan Copper Co is currently generating about 0.09 per unit of volatility. If you would invest 1,242 in Yunnan Copper Co on November 8, 2024 and sell it today you would earn a total of 22.00 from holding Yunnan Copper Co or generate 1.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Yunnan Copper Co
Performance |
| Timeline |
| Jiugui Liquor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Yunnan Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Jiugui Liquor and Yunnan Copper Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Yunnan Copper
The main advantage of trading using opposite Jiugui Liquor and Yunnan Copper positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Yunnan Copper 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 Yunnan Copper will offset losses from the drop in Yunnan Copper's long position.The idea behind Jiugui Liquor Co and Yunnan Copper Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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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