Correlation Between Jiugui Liquor and Pengxin International
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By analyzing existing cross correlation between Jiugui Liquor Co and Pengxin International Mining, you can compare the effects of market volatilities on Jiugui Liquor and Pengxin International 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 Pengxin International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Pengxin International.
Diversification Opportunities for Jiugui Liquor and Pengxin International
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiugui and Pengxin is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Pengxin International Mining in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pengxin International 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 Pengxin International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pengxin International has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Pengxin International go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Pengxin International
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Pengxin International. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.17 times less risky than Pengxin International. The stock trades about -0.07 of its potential returns per unit of risk. The Pengxin International Mining is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 331.00 in Pengxin International Mining on October 29, 2024 and sell it today you would lose (12.00) from holding Pengxin International Mining or give up 3.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Pengxin International Mining
Performance |
| Timeline |
| Jiugui Liquor |
| Pengxin International |
Jiugui Liquor and Pengxin International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Pengxin International
The main advantage of trading using opposite Jiugui Liquor and Pengxin International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Pengxin International 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 Pengxin International will offset losses from the drop in Pengxin International'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 |
| Pengxin International vs. Anhui Guofeng Plastic | Pengxin International vs. Anhui Fuhuang Steel | Pengxin International vs. Guangdong Liantai Environmental | Pengxin International vs. Western Metal Materials |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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