Correlation Between Jiugui Liquor and Guangzhou Automobile
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By analyzing existing cross correlation between Jiugui Liquor Co and Guangzhou Automobile Group, you can compare the effects of market volatilities on Jiugui Liquor and Guangzhou Automobile 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 Guangzhou Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Guangzhou Automobile.
Diversification Opportunities for Jiugui Liquor and Guangzhou Automobile
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiugui and Guangzhou is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Guangzhou Automobile Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Automobile 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 Guangzhou Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Automobile has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Guangzhou Automobile go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Guangzhou Automobile
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Guangzhou Automobile. In addition to that, Jiugui Liquor is 1.15 times more volatile than Guangzhou Automobile Group. It trades about -0.5 of its total potential returns per unit of risk. Guangzhou Automobile Group is currently generating about -0.37 per unit of volatility. If you would invest 977.00 in Guangzhou Automobile Group on October 14, 2024 and sell it today you would lose (150.00) from holding Guangzhou Automobile Group or give up 15.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Guangzhou Automobile Group
Performance |
| Timeline |
| Jiugui Liquor |
| Guangzhou Automobile |
Jiugui Liquor and Guangzhou Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Guangzhou Automobile
The main advantage of trading using opposite Jiugui Liquor and Guangzhou Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Guangzhou Automobile 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 Guangzhou Automobile will offset losses from the drop in Guangzhou Automobile'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 |
| Guangzhou Automobile vs. Chongqing Road Bridge | Guangzhou Automobile vs. Xizi Clean Energy | Guangzhou Automobile vs. Iat Automobile Technology | Guangzhou Automobile vs. Jiugui Liquor 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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