Correlation Between Jiugui Liquor and Aluminum Corp
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By analyzing existing cross correlation between Jiugui Liquor Co and Aluminum Corp of, you can compare the effects of market volatilities on Jiugui Liquor and Aluminum Corp 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 Aluminum Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Aluminum Corp.
Diversification Opportunities for Jiugui Liquor and Aluminum Corp
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Aluminum is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Aluminum Corp of in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aluminum Corp 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 Aluminum Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aluminum Corp has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Aluminum Corp go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Aluminum Corp
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.32 times more return on investment than Aluminum Corp. However, Jiugui Liquor is 1.32 times more volatile than Aluminum Corp of. It trades about 0.1 of its potential returns per unit of risk. Aluminum Corp of is currently generating about -0.23 per unit of risk. If you would invest 5,216 in Jiugui Liquor Co on August 25, 2024 and sell it today you would earn a total of 361.00 from holding Jiugui Liquor Co or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Aluminum Corp of
Performance |
| Timeline |
| Jiugui Liquor |
| Aluminum Corp |
Jiugui Liquor and Aluminum Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Aluminum Corp
The main advantage of trading using opposite Jiugui Liquor and Aluminum Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Aluminum Corp 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 Aluminum Corp will offset losses from the drop in Aluminum Corp's long position.| Jiugui Liquor vs. Aluminum Corp of | Jiugui Liquor vs. COL Digital Publishing | Jiugui Liquor vs. Shaanxi Meineng Clean | Jiugui Liquor vs. Gansu Huangtai Wine marketing |
| Aluminum Corp vs. Guangdong Advertising Co | Aluminum Corp vs. Aurora Optoelectronics Co | Aluminum Corp vs. Zhongrun Resources Investment | Aluminum Corp vs. Leaguer Shenzhen MicroElectronics |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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