Correlation Between Jiugui Liquor and Guangdong Silvere
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By analyzing existing cross correlation between Jiugui Liquor Co and Guangdong Silvere Sci, you can compare the effects of market volatilities on Jiugui Liquor and Guangdong Silvere 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 Guangdong Silvere. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Guangdong Silvere.
Diversification Opportunities for Jiugui Liquor and Guangdong Silvere
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Guangdong is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Guangdong Silvere Sci in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Silvere Sci 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 Guangdong Silvere. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Silvere Sci has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Guangdong Silvere go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Guangdong Silvere
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Guangdong Silvere. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.1 times less risky than Guangdong Silvere. The stock trades about -0.07 of its potential returns per unit of risk. The Guangdong Silvere Sci is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 664.00 in Guangdong Silvere Sci on September 14, 2024 and sell it today you would earn a total of 21.00 from holding Guangdong Silvere Sci or generate 3.16% 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. Guangdong Silvere Sci
Performance |
| Timeline |
| Jiugui Liquor |
| Guangdong Silvere Sci |
Jiugui Liquor and Guangdong Silvere Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Guangdong Silvere
The main advantage of trading using opposite Jiugui Liquor and Guangdong Silvere positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Guangdong Silvere 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 Guangdong Silvere will offset losses from the drop in Guangdong Silvere's long position.| Jiugui Liquor vs. Rongsheng Petrochemical Co | Jiugui Liquor vs. Huaxia Fund Management | Jiugui Liquor vs. Jilin Chemical Fibre | Jiugui Liquor vs. Union Semiconductor Co |
| Guangdong Silvere vs. Jiugui Liquor Co | Guangdong Silvere vs. Air China Ltd | Guangdong Silvere vs. Anhui Huaren Health | Guangdong Silvere vs. Shandong Sinoglory Health |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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