Correlation Between Jiugui Liquor and HeBei Jinniu
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By analyzing existing cross correlation between Jiugui Liquor Co and HeBei Jinniu Chemical, you can compare the effects of market volatilities on Jiugui Liquor and HeBei Jinniu 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 HeBei Jinniu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and HeBei Jinniu.
Diversification Opportunities for Jiugui Liquor and HeBei Jinniu
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiugui and HeBei is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and HeBei Jinniu Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeBei Jinniu 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 HeBei Jinniu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeBei Jinniu Chemical has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and HeBei Jinniu go up and down completely randomly.
Pair Corralation between Jiugui Liquor and HeBei Jinniu
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the HeBei Jinniu. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.49 times less risky than HeBei Jinniu. The stock trades about -0.5 of its potential returns per unit of risk. The HeBei Jinniu Chemical is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 555.00 in HeBei Jinniu Chemical on October 14, 2024 and sell it today you would lose (18.00) from holding HeBei Jinniu Chemical or give up 3.24% 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. HeBei Jinniu Chemical
Performance |
| Timeline |
| Jiugui Liquor |
| HeBei Jinniu Chemical |
Jiugui Liquor and HeBei Jinniu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and HeBei Jinniu
The main advantage of trading using opposite Jiugui Liquor and HeBei Jinniu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, HeBei Jinniu 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 HeBei Jinniu will offset losses from the drop in HeBei Jinniu's long position.| Jiugui Liquor vs. Western Metal Materials | Jiugui Liquor vs. FSPG Hi Tech Co | Jiugui Liquor vs. Shenyang Huitian Thermal | Jiugui Liquor vs. Ningbo Jintian Copper |
| HeBei Jinniu vs. Liaoning Dingjide Petrochemical | HeBei Jinniu vs. Qtone Education Group | HeBei Jinniu vs. Shenyang Chemical Industry | HeBei Jinniu vs. Dosilicon 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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