Correlation Between Jiugui Liquor and Elite Color
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By analyzing existing cross correlation between Jiugui Liquor Co and Elite Color Environmental, you can compare the effects of market volatilities on Jiugui Liquor and Elite Color 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 Elite Color. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Elite Color.
Diversification Opportunities for Jiugui Liquor and Elite Color
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Elite is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Elite Color Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Elite Color Environmental 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 Elite Color. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Elite Color Environmental has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Elite Color go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Elite Color
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.05 times more return on investment than Elite Color. However, Jiugui Liquor is 1.05 times more volatile than Elite Color Environmental. It trades about 0.23 of its potential returns per unit of risk. Elite Color Environmental is currently generating about 0.17 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. Elite Color Environmental
Performance |
| Timeline |
| Jiugui Liquor |
| Elite Color Environmental |
Jiugui Liquor and Elite Color Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Elite Color
The main advantage of trading using opposite Jiugui Liquor and Elite Color positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Elite Color 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 Elite Color will offset losses from the drop in Elite Color'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 |
| Elite Color vs. TVZone Media Co | Elite Color vs. Lander Sports Development | Elite Color vs. Shenzhen Bioeasy Biotechnology | Elite Color vs. Wuhan Hvsen Biotechnology |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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