Correlation Between Telling Telecommunicatio and Jinhui Liquor
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By analyzing existing cross correlation between Telling Telecommunication Holding and Jinhui Liquor Co, you can compare the effects of market volatilities on Telling Telecommunicatio and Jinhui 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 Telling Telecommunicatio with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Telling Telecommunicatio and Jinhui Liquor.
Diversification Opportunities for Telling Telecommunicatio and Jinhui Liquor
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Telling and Jinhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Telling Telecommunication Hold and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Telling Telecommunicatio 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 Telling Telecommunication Holding are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Telling Telecommunicatio i.e., Telling Telecommunicatio and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Telling Telecommunicatio and Jinhui Liquor
Assuming the 90 days trading horizon Telling Telecommunication Holding is expected to under-perform the Jinhui Liquor. In addition to that, Telling Telecommunicatio is 2.28 times more volatile than Jinhui Liquor Co. It trades about -0.35 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.35 per unit of volatility. If you would invest 2,066 in Jinhui Liquor Co on October 11, 2024 and sell it today you would lose (248.00) from holding Jinhui Liquor Co or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Telling Telecommunication Hold vs. Jinhui Liquor Co
Performance |
| Timeline |
| Telling Telecommunicatio |
| Jinhui Liquor |
Telling Telecommunicatio and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Telling Telecommunicatio and Jinhui Liquor
The main advantage of trading using opposite Telling Telecommunicatio and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Telling Telecommunicatio position performs unexpectedly, Jinhui 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.The idea behind Telling Telecommunication Holding and Jinhui Liquor Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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