Correlation Between Jiugui Liquor and Beijing HuaYuanYiTong
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiugui Liquor Co and Beijing HuaYuanYiTong Thermal, you can compare the effects of market volatilities on Jiugui Liquor and Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Beijing HuaYuanYiTong.
Diversification Opportunities for Jiugui Liquor and Beijing HuaYuanYiTong
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Beijing is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Beijing HuaYuanYiTong Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing HuaYuanYiTong has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Beijing HuaYuanYiTong go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Beijing HuaYuanYiTong
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.36 times more return on investment than Beijing HuaYuanYiTong. However, Jiugui Liquor is 1.36 times more volatile than Beijing HuaYuanYiTong Thermal. It trades about -0.37 of its potential returns per unit of risk. Beijing HuaYuanYiTong Thermal is currently generating about -0.54 per unit of risk. If you would invest 5,911 in Jiugui Liquor Co on October 11, 2024 and sell it today you would lose (1,157) from holding Jiugui Liquor Co or give up 19.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Beijing HuaYuanYiTong Thermal
Performance |
| Timeline |
| Jiugui Liquor |
| Beijing HuaYuanYiTong |
Jiugui Liquor and Beijing HuaYuanYiTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Beijing HuaYuanYiTong
The main advantage of trading using opposite Jiugui Liquor and Beijing HuaYuanYiTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Beijing HuaYuanYiTong 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 Beijing HuaYuanYiTong will offset losses from the drop in Beijing HuaYuanYiTong'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 |
| Beijing HuaYuanYiTong vs. Zijin Mining Group | Beijing HuaYuanYiTong vs. Ningbo Fangzheng Automobile | Beijing HuaYuanYiTong vs. Western Mining Co | Beijing HuaYuanYiTong vs. Jinhui Mining 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |