Correlation Between Jiugui Liquor and Konfoong Materials
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By analyzing existing cross correlation between Jiugui Liquor Co and Konfoong Materials International, you can compare the effects of market volatilities on Jiugui Liquor and Konfoong Materials 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 Konfoong Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Konfoong Materials.
Diversification Opportunities for Jiugui Liquor and Konfoong Materials
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Konfoong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Konfoong Materials Internation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Konfoong Materials 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 Konfoong Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Konfoong Materials has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Konfoong Materials go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Konfoong Materials
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Konfoong Materials. In addition to that, Jiugui Liquor is 1.11 times more volatile than Konfoong Materials International. It trades about -0.28 of its total potential returns per unit of risk. Konfoong Materials International is currently generating about -0.11 per unit of volatility. If you would invest 7,248 in Konfoong Materials International on October 19, 2024 and sell it today you would lose (435.00) from holding Konfoong Materials International or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Konfoong Materials Internation
Performance |
| Timeline |
| Jiugui Liquor |
| Konfoong Materials |
Jiugui Liquor and Konfoong Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Konfoong Materials
The main advantage of trading using opposite Jiugui Liquor and Konfoong Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Konfoong Materials 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 Konfoong Materials will offset losses from the drop in Konfoong Materials' long position.| Jiugui Liquor vs. Guangdong Jingyi Metal | Jiugui Liquor vs. Ye Chiu Metal | Jiugui Liquor vs. CITIC Metal Co | Jiugui Liquor vs. Tongyu Communication |
| Konfoong Materials vs. Jiugui Liquor Co | Konfoong Materials vs. Luyin Investment Group | Konfoong Materials vs. Kunwu Jiuding Investment | Konfoong Materials vs. JCHX Mining Management |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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