Correlation Between Wuliangye Yibin and Jiangsu Pacific
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By analyzing existing cross correlation between Wuliangye Yibin Co and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Wuliangye Yibin and Jiangsu Pacific 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 Wuliangye Yibin with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuliangye Yibin and Jiangsu Pacific.
Diversification Opportunities for Wuliangye Yibin and Jiangsu Pacific
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Wuliangye and Jiangsu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Wuliangye Yibin Co and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Wuliangye Yibin 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 Wuliangye Yibin Co are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Wuliangye Yibin i.e., Wuliangye Yibin and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Wuliangye Yibin and Jiangsu Pacific
Assuming the 90 days trading horizon Wuliangye Yibin Co is expected to generate 0.57 times more return on investment than Jiangsu Pacific. However, Wuliangye Yibin Co is 1.76 times less risky than Jiangsu Pacific. It trades about -0.01 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about -0.07 per unit of risk. If you would invest 17,270 in Wuliangye Yibin Co on August 30, 2024 and sell it today you would lose (2,565) from holding Wuliangye Yibin Co or give up 14.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuliangye Yibin Co vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Wuliangye Yibin |
| Jiangsu Pacific Quartz |
Wuliangye Yibin and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuliangye Yibin and Jiangsu Pacific
The main advantage of trading using opposite Wuliangye Yibin and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuliangye Yibin position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Wuliangye Yibin vs. Sinomach General Machinery | Wuliangye Yibin vs. Yankershop Food Co | Wuliangye Yibin vs. China Railway Construction | Wuliangye Yibin vs. Great Sun Foods Co |
| Jiangsu Pacific vs. Guangzhou KingTeller Technology | Jiangsu Pacific vs. Chengdu Xingrong Investment | Jiangsu Pacific vs. Western Superconducting Tech | Jiangsu Pacific vs. Hunan Investment Group |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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