Correlation Between Jiugui Liquor and Ningbo MedicalSystem
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By analyzing existing cross correlation between Jiugui Liquor Co and Ningbo MedicalSystem Biotechnology, you can compare the effects of market volatilities on Jiugui Liquor and Ningbo MedicalSystem 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 Ningbo MedicalSystem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Ningbo MedicalSystem.
Diversification Opportunities for Jiugui Liquor and Ningbo MedicalSystem
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Ningbo is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Ningbo MedicalSystem Biotechno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo MedicalSystem 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 Ningbo MedicalSystem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo MedicalSystem has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Ningbo MedicalSystem go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Ningbo MedicalSystem
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.3 times more return on investment than Ningbo MedicalSystem. However, Jiugui Liquor is 1.3 times more volatile than Ningbo MedicalSystem Biotechnology. It trades about 0.24 of its potential returns per unit of risk. Ningbo MedicalSystem Biotechnology is currently generating about 0.12 per unit of risk. If you would invest 5,058 in Jiugui Liquor Co on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Jiugui Liquor Co or generate 18.54% 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. Ningbo MedicalSystem Biotechno
Performance |
| Timeline |
| Jiugui Liquor |
| Ningbo MedicalSystem |
Jiugui Liquor and Ningbo MedicalSystem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Ningbo MedicalSystem
The main advantage of trading using opposite Jiugui Liquor and Ningbo MedicalSystem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Ningbo MedicalSystem 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 Ningbo MedicalSystem will offset losses from the drop in Ningbo MedicalSystem's long position.| Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
| Ningbo MedicalSystem vs. PetroChina Co Ltd | Ningbo MedicalSystem vs. China Mobile Limited | Ningbo MedicalSystem vs. CNOOC Limited | Ningbo MedicalSystem vs. Ping An Insurance |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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