Correlation Between Jiugui Liquor and Industrial
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By analyzing existing cross correlation between Jiugui Liquor Co and Industrial and Commercial, you can compare the effects of market volatilities on Jiugui Liquor and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Industrial.
Diversification Opportunities for Jiugui Liquor and Industrial
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiugui and Industrial is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Industrial go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Industrial
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 3.81 times more return on investment than Industrial. However, Jiugui Liquor is 3.81 times more volatile than Industrial and Commercial. It trades about 0.21 of its potential returns per unit of risk. Industrial and Commercial is currently generating about 0.07 per unit of risk. If you would invest 5,172 in Jiugui Liquor Co on September 5, 2024 and sell it today you would earn a total of 821.00 from holding Jiugui Liquor Co or generate 15.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Industrial and Commercial
Performance |
| Timeline |
| Jiugui Liquor |
| Industrial and Commercial |
Jiugui Liquor and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Industrial
The main advantage of trading using opposite Jiugui Liquor and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Jiugui Liquor vs. Industrial and Commercial | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. China Construction Bank | Jiugui Liquor vs. Bank of China |
| Industrial vs. Sichuan Hebang Biotechnology | Industrial vs. Bloomage Biotechnology Corp | Industrial vs. Liaoning Chengda Biotechnology | Industrial vs. BCEG Environmental Remediation |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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