Correlation Between Jiugui Liquor and China Galaxy
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By analyzing existing cross correlation between Jiugui Liquor Co and China Galaxy Securities, you can compare the effects of market volatilities on Jiugui Liquor and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and China Galaxy.
Diversification Opportunities for Jiugui Liquor and China Galaxy
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiugui and China is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and China Galaxy go up and down completely randomly.
Pair Corralation between Jiugui Liquor and China Galaxy
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the China Galaxy. In addition to that, Jiugui Liquor is 1.24 times more volatile than China Galaxy Securities. It trades about -0.29 of its total potential returns per unit of risk. China Galaxy Securities is currently generating about -0.13 per unit of volatility. If you would invest 1,559 in China Galaxy Securities on October 30, 2024 and sell it today you would lose (162.00) from holding China Galaxy Securities or give up 10.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. China Galaxy Securities
Performance |
| Timeline |
| Jiugui Liquor |
| China Galaxy Securities |
Jiugui Liquor and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and China Galaxy
The main advantage of trading using opposite Jiugui Liquor and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Jiugui Liquor vs. City Development Environment | Jiugui Liquor vs. Jilin Jlu Communication | Jiugui Liquor vs. Queclink Wireless Solutions | Jiugui Liquor vs. Guangdong Liantai Environmental |
| China Galaxy vs. Industrial and Commercial | China Galaxy vs. Kweichow Moutai Co | China Galaxy vs. Agricultural Bank of | China Galaxy vs. China Mobile Limited |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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