Correlation Between Jiugui Liquor and Western Metal
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By analyzing existing cross correlation between Jiugui Liquor Co and Western Metal Materials, you can compare the effects of market volatilities on Jiugui Liquor and Western Metal 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 Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Western Metal.
Diversification Opportunities for Jiugui Liquor and Western Metal
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Western is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials 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 Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Western Metal go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Western Metal
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.12 times more return on investment than Western Metal. However, Jiugui Liquor is 1.12 times more volatile than Western Metal Materials. It trades about 0.23 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.02 per unit of risk. If you would invest 5,101 in Jiugui Liquor Co on September 2, 2024 and sell it today you would earn a total of 895.00 from holding Jiugui Liquor Co or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Western Metal Materials
Performance |
| Timeline |
| Jiugui Liquor |
| Western Metal Materials |
Jiugui Liquor and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Western Metal
The main advantage of trading using opposite Jiugui Liquor and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Western Metal 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 Western Metal will offset losses from the drop in Western Metal's long position.| Jiugui Liquor vs. Guangdong Shenglu Telecommunication | Jiugui Liquor vs. Hangzhou Gaoxin Rubber | Jiugui Liquor vs. Xinjiang Communications Construction | Jiugui Liquor vs. Sinosteel Luonai Materials |
| Western Metal vs. Zijin Mining Group | Western Metal vs. Wanhua Chemical Group | Western Metal vs. Baoshan Iron Steel | Western Metal vs. Shandong Gold Mining |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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