Correlation Between Jiugui Liquor and Beijing E
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiugui Liquor Co and Beijing E Hualu, you can compare the effects of market volatilities on Jiugui Liquor and Beijing E 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 E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Beijing E.
Diversification Opportunities for Jiugui Liquor and Beijing E
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Beijing is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Beijing E Hualu in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing E Hualu 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 E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing E Hualu has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Beijing E go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Beijing E
Assuming the 90 days trading horizon Jiugui Liquor is expected to generate 5.93 times less return on investment than Beijing E. But when comparing it to its historical volatility, Jiugui Liquor Co is 1.46 times less risky than Beijing E. It trades about 0.0 of its potential returns per unit of risk. Beijing E Hualu is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 2,818 in Beijing E Hualu on September 3, 2024 and sell it today you would lose (122.00) from holding Beijing E Hualu or give up 4.33% 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. Beijing E Hualu
Performance |
| Timeline |
| Jiugui Liquor |
| Beijing E Hualu |
Jiugui Liquor and Beijing E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Beijing E
The main advantage of trading using opposite Jiugui Liquor and Beijing E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Beijing E 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 E will offset losses from the drop in Beijing E's long position.| Jiugui Liquor vs. Chongqing Brewery Co | Jiugui Liquor vs. JiShi Media Co | Jiugui Liquor vs. China Publishing Media | Jiugui Liquor vs. Zhejiang Daily Media |
| Beijing E vs. Shuhua Sports Co | Beijing E vs. Jiangsu Yueda Investment | Beijing E vs. Sportsoul Co Ltd | Beijing E vs. Tieling Newcity 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |