Correlation Between Jiugui Liquor and Xinjiang Tianrun
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By analyzing existing cross correlation between Jiugui Liquor Co and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on Jiugui Liquor and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Xinjiang Tianrun.
Diversification Opportunities for Jiugui Liquor and Xinjiang Tianrun
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Xinjiang is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Xinjiang Tianrun
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.36 times more return on investment than Xinjiang Tianrun. However, Jiugui Liquor is 1.36 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.06 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about 0.06 per unit of risk. If you would invest 5,128 in Jiugui Liquor Co on September 3, 2024 and sell it today you would earn a total of 987.00 from holding Jiugui Liquor Co or generate 19.25% 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. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| Jiugui Liquor |
| Xinjiang Tianrun Dairy |
Jiugui Liquor and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Xinjiang Tianrun
The main advantage of trading using opposite Jiugui Liquor and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| Jiugui Liquor vs. Chongqing Brewery Co | Jiugui Liquor vs. JiShi Media Co | Jiugui Liquor vs. China Publishing Media | Jiugui Liquor vs. Zhejiang Daily Media |
| Xinjiang Tianrun vs. Beijing Wantai Biological | Xinjiang Tianrun vs. Aluminum Corp of | Xinjiang Tianrun vs. COL Digital Publishing | Xinjiang Tianrun vs. Shaanxi Meineng Clean |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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