Correlation Between Jiugui Liquor and Ningbo Jintian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiugui Liquor Co and Ningbo Jintian Copper, you can compare the effects of market volatilities on Jiugui Liquor and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Ningbo Jintian.
Diversification Opportunities for Jiugui Liquor and Ningbo Jintian
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and Ningbo is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Ningbo Jintian go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Ningbo Jintian
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 2.16 times more return on investment than Ningbo Jintian. However, Jiugui Liquor is 2.16 times more volatile than Ningbo Jintian Copper. It trades about 0.24 of its potential returns per unit of risk. Ningbo Jintian Copper is currently generating about 0.15 per unit of risk. If you would invest 5,058 in Jiugui Liquor Co on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Jiugui Liquor Co or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Ningbo Jintian Copper
Performance |
| Timeline |
| Jiugui Liquor |
| Ningbo Jintian Copper |
Jiugui Liquor and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Ningbo Jintian
The main advantage of trading using opposite Jiugui Liquor and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
| Ningbo Jintian vs. Zijin Mining Group | Ningbo Jintian vs. Wanhua Chemical Group | Ningbo Jintian vs. Baoshan Iron Steel | Ningbo Jintian vs. Shandong Gold Mining |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated |