Correlation Between JS Corrugating and Jiugui Liquor
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By analyzing existing cross correlation between JS Corrugating Machinery and Jiugui Liquor Co, you can compare the effects of market volatilities on JS Corrugating and Jiugui Liquor 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 JS Corrugating with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of JS Corrugating and Jiugui Liquor.
Diversification Opportunities for JS Corrugating and Jiugui Liquor
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 000821 and Jiugui is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding JS Corrugating Machinery and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and JS Corrugating 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 JS Corrugating Machinery are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of JS Corrugating i.e., JS Corrugating and Jiugui Liquor go up and down completely randomly.
Pair Corralation between JS Corrugating and Jiugui Liquor
Assuming the 90 days trading horizon JS Corrugating Machinery is expected to generate 1.19 times more return on investment than Jiugui Liquor. However, JS Corrugating is 1.19 times more volatile than Jiugui Liquor Co. It trades about 0.01 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.06 per unit of risk. If you would invest 1,578 in JS Corrugating Machinery on September 13, 2024 and sell it today you would lose (195.00) from holding JS Corrugating Machinery or give up 12.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
JS Corrugating Machinery vs. Jiugui Liquor Co
Performance |
| Timeline |
| JS Corrugating Machinery |
| Jiugui Liquor |
JS Corrugating and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with JS Corrugating and Jiugui Liquor
The main advantage of trading using opposite JS Corrugating and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if JS Corrugating position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| JS Corrugating vs. Industrial and Commercial | JS Corrugating vs. Kweichow Moutai Co | JS Corrugating vs. Agricultural Bank of | JS Corrugating vs. China Mobile Limited |
| Jiugui Liquor vs. Ningxia Younglight Chemicals | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Guangzhou Jointas Chemical | Jiugui Liquor vs. Miracll Chemicals 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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