Correlation Between Jiugui Liquor and Fujian Nanwang
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By analyzing existing cross correlation between Jiugui Liquor Co and Fujian Nanwang Environment, you can compare the effects of market volatilities on Jiugui Liquor and Fujian Nanwang 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 Fujian Nanwang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Fujian Nanwang.
Diversification Opportunities for Jiugui Liquor and Fujian Nanwang
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Fujian is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Fujian Nanwang Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fujian Nanwang Envir 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 Fujian Nanwang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fujian Nanwang Envir has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Fujian Nanwang go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Fujian Nanwang
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.88 times more return on investment than Fujian Nanwang. However, Jiugui Liquor is 1.88 times more volatile than Fujian Nanwang Environment. It trades about 0.18 of its potential returns per unit of risk. Fujian Nanwang Environment is currently generating about 0.17 per unit of risk. If you would invest 5,170 in Jiugui Liquor Co on August 31, 2024 and sell it today you would earn a total of 699.00 from holding Jiugui Liquor Co or generate 13.52% 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. Fujian Nanwang Environment
Performance |
| Timeline |
| Jiugui Liquor |
| Fujian Nanwang Envir |
Jiugui Liquor and Fujian Nanwang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Fujian Nanwang
The main advantage of trading using opposite Jiugui Liquor and Fujian Nanwang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Fujian Nanwang 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 Fujian Nanwang will offset losses from the drop in Fujian Nanwang's long position.| Jiugui Liquor vs. Sichuan Fulin Transportation | Jiugui Liquor vs. China Asset Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Northern United Publishing |
| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Rongsheng Petrochemical Co | Fujian Nanwang vs. Hoshine Silicon Ind |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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