Correlation Between Jiugui Liquor and Goodwill E
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By analyzing existing cross correlation between Jiugui Liquor Co and Goodwill E Health, you can compare the effects of market volatilities on Jiugui Liquor and Goodwill E 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 Goodwill E. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Goodwill E.
Diversification Opportunities for Jiugui Liquor and Goodwill E
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Goodwill is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Goodwill E Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodwill E Health 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 Goodwill E. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodwill E Health has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Goodwill E go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Goodwill E
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Goodwill E. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.37 times less risky than Goodwill E. The stock trades about -0.38 of its potential returns per unit of risk. The Goodwill E Health is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 2,480 in Goodwill E Health on November 1, 2024 and sell it today you would lose (87.00) from holding Goodwill E Health or give up 3.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiugui Liquor Co vs. Goodwill E Health
Performance |
| Timeline |
| Jiugui Liquor |
| Goodwill E Health |
Jiugui Liquor and Goodwill E Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiugui Liquor and Goodwill E
The main advantage of trading using opposite Jiugui Liquor and Goodwill E positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Goodwill E 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 Goodwill E will offset losses from the drop in Goodwill E's long position.| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
| Goodwill E vs. Ligao Foods CoLtd | Goodwill E vs. Jinhui Liquor Co | Goodwill E vs. Jiugui Liquor Co | Goodwill E vs. Anji Foodstuff 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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