Correlation Between Xiangtan Electrochemical and Jiugui Liquor
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By analyzing existing cross correlation between Xiangtan Electrochemical Scientific and Jiugui Liquor Co, you can compare the effects of market volatilities on Xiangtan Electrochemical 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 Xiangtan Electrochemical with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiangtan Electrochemical and Jiugui Liquor.
Diversification Opportunities for Xiangtan Electrochemical and Jiugui Liquor
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Xiangtan and Jiugui is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Xiangtan Electrochemical Scien and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Xiangtan Electrochemical 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 Xiangtan Electrochemical Scientific 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 Xiangtan Electrochemical i.e., Xiangtan Electrochemical and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Xiangtan Electrochemical and Jiugui Liquor
Assuming the 90 days trading horizon Xiangtan Electrochemical Scientific is expected to generate 0.73 times more return on investment than Jiugui Liquor. However, Xiangtan Electrochemical Scientific is 1.38 times less risky than Jiugui Liquor. It trades about -0.38 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.5 per unit of risk. If you would invest 1,122 in Xiangtan Electrochemical Scientific on October 14, 2024 and sell it today you would lose (148.00) from holding Xiangtan Electrochemical Scientific or give up 13.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiangtan Electrochemical Scien vs. Jiugui Liquor Co
Performance |
| Timeline |
| Xiangtan Electrochemical |
| Jiugui Liquor |
Xiangtan Electrochemical and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiangtan Electrochemical and Jiugui Liquor
The main advantage of trading using opposite Xiangtan Electrochemical and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiangtan Electrochemical 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.| Xiangtan Electrochemical vs. Aluminum Corp of | Xiangtan Electrochemical vs. Rising Nonferrous Metals | Xiangtan Electrochemical vs. Success Electronics | Xiangtan Electrochemical vs. Jiaozuo Wanfang Aluminum |
| Jiugui Liquor vs. Western Metal Materials | Jiugui Liquor vs. FSPG Hi Tech Co | Jiugui Liquor vs. Shenyang Huitian Thermal | Jiugui Liquor vs. Ningbo Jintian Copper |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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