Correlation Between Jiugui Liquor and Yangmei Chemical
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By analyzing existing cross correlation between Jiugui Liquor Co and Yangmei Chemical Co, you can compare the effects of market volatilities on Jiugui Liquor and Yangmei Chemical 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 Yangmei Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Yangmei Chemical.
Diversification Opportunities for Jiugui Liquor and Yangmei Chemical
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Yangmei is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Yangmei Chemical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yangmei Chemical 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 Yangmei Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yangmei Chemical has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Yangmei Chemical go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Yangmei Chemical
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 0.97 times more return on investment than Yangmei Chemical. However, Jiugui Liquor Co is 1.03 times less risky than Yangmei Chemical. It trades about 0.0 of its potential returns per unit of risk. Yangmei Chemical Co is currently generating about -0.02 per unit of risk. If you would invest 6,693 in Jiugui Liquor Co on September 4, 2024 and sell it today you would lose (700.00) from holding Jiugui Liquor Co or give up 10.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Yangmei Chemical Co
Performance |
| Timeline |
| Jiugui Liquor |
| Yangmei Chemical |
Jiugui Liquor and Yangmei Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Yangmei Chemical
The main advantage of trading using opposite Jiugui Liquor and Yangmei Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Yangmei Chemical 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 Yangmei Chemical will offset losses from the drop in Yangmei Chemical's long position.| Jiugui Liquor vs. Yangmei Chemical Co | Jiugui Liquor vs. Peoples Insurance of | Jiugui Liquor vs. Guangdong Brandmax Marketing | Jiugui Liquor vs. Liuzhou Chemical Industry |
| Yangmei Chemical vs. Kunwu Jiuding Investment | Yangmei Chemical vs. Xiandai Investment Co | Yangmei Chemical vs. HeBei Jinniu Chemical | Yangmei Chemical vs. Xilong Chemical 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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