Correlation Between Jiugui Liquor and Sany Heavy
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By analyzing existing cross correlation between Jiugui Liquor Co and Sany Heavy Industry, you can compare the effects of market volatilities on Jiugui Liquor and Sany Heavy 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 Sany Heavy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Sany Heavy.
Diversification Opportunities for Jiugui Liquor and Sany Heavy
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Sany is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Sany Heavy Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sany Heavy Industry 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 Sany Heavy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sany Heavy Industry has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Sany Heavy go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Sany Heavy
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Sany Heavy. In addition to that, Jiugui Liquor is 1.44 times more volatile than Sany Heavy Industry. It trades about -0.06 of its total potential returns per unit of risk. Sany Heavy Industry is currently generating about 0.02 per unit of volatility. If you would invest 1,597 in Sany Heavy Industry on September 13, 2024 and sell it today you would earn a total of 99.00 from holding Sany Heavy Industry or generate 6.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Sany Heavy Industry
Performance |
| Timeline |
| Jiugui Liquor |
| Sany Heavy Industry |
Jiugui Liquor and Sany Heavy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Sany Heavy
The main advantage of trading using opposite Jiugui Liquor and Sany Heavy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Sany Heavy 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 Sany Heavy will offset losses from the drop in Sany Heavy's long position.| Jiugui Liquor vs. Ningxia Younglight Chemicals | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Guangzhou Jointas Chemical | Jiugui Liquor vs. Miracll Chemicals Co |
| Sany Heavy vs. Beijing Sanyuan Foods | Sany Heavy vs. Jiangxi JDL Environmental | Sany Heavy vs. Sinocat Environmental Technology | Sany Heavy vs. Bengang Steel Plates |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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