Correlation Between Jiugui Liquor and Beijing Jiaman
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By analyzing existing cross correlation between Jiugui Liquor Co and Beijing Jiaman Dress, you can compare the effects of market volatilities on Jiugui Liquor and Beijing Jiaman 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 Jiaman. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Beijing Jiaman.
Diversification Opportunities for Jiugui Liquor and Beijing Jiaman
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Beijing is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Beijing Jiaman Dress in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Jiaman Dress 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 Jiaman. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Jiaman Dress has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Beijing Jiaman go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Beijing Jiaman
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Beijing Jiaman. In addition to that, Jiugui Liquor is 1.29 times more volatile than Beijing Jiaman Dress. It trades about -0.33 of its total potential returns per unit of risk. Beijing Jiaman Dress is currently generating about -0.06 per unit of volatility. If you would invest 2,066 in Beijing Jiaman Dress on October 29, 2024 and sell it today you would lose (66.00) from holding Beijing Jiaman Dress or give up 3.19% 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 Jiaman Dress
Performance |
| Timeline |
| Jiugui Liquor |
| Beijing Jiaman Dress |
Jiugui Liquor and Beijing Jiaman Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Beijing Jiaman
The main advantage of trading using opposite Jiugui Liquor and Beijing Jiaman positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Beijing Jiaman 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 Jiaman will offset losses from the drop in Beijing Jiaman's long position.| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
| Beijing Jiaman vs. Duzhe Publishing Media | Beijing Jiaman vs. Changjiang Publishing Media | Beijing Jiaman vs. Jinhui Liquor Co | Beijing Jiaman vs. Yunnan Jianzhijia Health Chain |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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