Correlation Between Jiugui Liquor and Hubei Geoway
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By analyzing existing cross correlation between Jiugui Liquor Co and Hubei Geoway Investment, you can compare the effects of market volatilities on Jiugui Liquor and Hubei Geoway 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 Hubei Geoway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Hubei Geoway.
Diversification Opportunities for Jiugui Liquor and Hubei Geoway
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiugui and Hubei is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Hubei Geoway Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Geoway Investment 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 Hubei Geoway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Geoway Investment has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Hubei Geoway go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Hubei Geoway
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Hubei Geoway. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.07 times less risky than Hubei Geoway. The stock trades about -0.07 of its potential returns per unit of risk. The Hubei Geoway Investment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 211.00 in Hubei Geoway Investment on October 29, 2024 and sell it today you would lose (65.00) from holding Hubei Geoway Investment or give up 30.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Hubei Geoway Investment
Performance |
| Timeline |
| Jiugui Liquor |
| Hubei Geoway Investment |
Jiugui Liquor and Hubei Geoway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Hubei Geoway
The main advantage of trading using opposite Jiugui Liquor and Hubei Geoway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Hubei Geoway 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 Hubei Geoway will offset losses from the drop in Hubei Geoway'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 |
| Hubei Geoway vs. Ping An Insurance | Hubei Geoway vs. HeNan Splendor Science | Hubei Geoway vs. Bank of Suzhou | Hubei Geoway vs. Qilu Bank Co |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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