Correlation Between Jiugui Liquor and Xiangtan Electrochemical
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By analyzing existing cross correlation between Jiugui Liquor Co and Xiangtan Electrochemical Scientific, you can compare the effects of market volatilities on Jiugui Liquor and Xiangtan Electrochemical 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 Xiangtan Electrochemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Xiangtan Electrochemical.
Diversification Opportunities for Jiugui Liquor and Xiangtan Electrochemical
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Xiangtan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Xiangtan Electrochemical Scien in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangtan Electrochemical 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 Xiangtan Electrochemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangtan Electrochemical has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Xiangtan Electrochemical go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Xiangtan Electrochemical
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Xiangtan Electrochemical. In addition to that, Jiugui Liquor is 1.38 times more volatile than Xiangtan Electrochemical Scientific. It trades about -0.5 of its total potential returns per unit of risk. Xiangtan Electrochemical Scientific is currently generating about -0.38 per unit of volatility. If you would invest 1,122 in Xiangtan Electrochemical Scientific on October 14, 2024 and sell it today you would lose (148.00) from holding Xiangtan Electrochemical Scientific or give up 13.19% 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. Xiangtan Electrochemical Scien
Performance |
| Timeline |
| Jiugui Liquor |
| Xiangtan Electrochemical |
Jiugui Liquor and Xiangtan Electrochemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Xiangtan Electrochemical
The main advantage of trading using opposite Jiugui Liquor and Xiangtan Electrochemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Xiangtan Electrochemical 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 Xiangtan Electrochemical will offset losses from the drop in Xiangtan Electrochemical's long position.| Jiugui Liquor vs. Western Metal Materials | Jiugui Liquor vs. FSPG Hi Tech Co | Jiugui Liquor vs. Shenyang Huitian Thermal | Jiugui Liquor vs. Ningbo Jintian Copper |
| Xiangtan Electrochemical vs. Aluminum Corp of | Xiangtan Electrochemical vs. Rising Nonferrous Metals | Xiangtan Electrochemical vs. Success Electronics | Xiangtan Electrochemical vs. Jiaozuo Wanfang Aluminum |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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