Correlation Between Xiandai Investment and Jinhui Liquor
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By analyzing existing cross correlation between Xiandai Investment Co and Jinhui Liquor Co, you can compare the effects of market volatilities on Xiandai Investment 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 Xiandai Investment with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiandai Investment and Jinhui Liquor.
Diversification Opportunities for Xiandai Investment and Jinhui Liquor
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Xiandai and Jinhui is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Xiandai Investment Co and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Xiandai Investment 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 Xiandai Investment Co 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 Xiandai Investment i.e., Xiandai Investment and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Xiandai Investment and Jinhui Liquor
Assuming the 90 days trading horizon Xiandai Investment Co is expected to generate 0.85 times more return on investment than Jinhui Liquor. However, Xiandai Investment Co is 1.17 times less risky than Jinhui Liquor. It trades about 0.01 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.05 per unit of risk. If you would invest 411.00 in Xiandai Investment Co on October 14, 2024 and sell it today you would earn a total of 0.00 from holding Xiandai Investment Co or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiandai Investment Co vs. Jinhui Liquor Co
Performance |
| Timeline |
| Xiandai Investment |
| Jinhui Liquor |
Xiandai Investment and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiandai Investment and Jinhui Liquor
The main advantage of trading using opposite Xiandai Investment and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiandai Investment 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.| Xiandai Investment vs. Ningbo Homelink Eco iTech | Xiandai Investment vs. DO Home Collection | Xiandai Investment vs. Sharetronic Data Technology | Xiandai Investment vs. UE Furniture Co |
| Jinhui Liquor vs. Vanfund Urban Investment | Jinhui Liquor vs. Metro Investment Development | Jinhui Liquor vs. Zhejiang Construction Investment | Jinhui Liquor vs. Xiandai Investment 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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