Correlation Between Zhejiang Yinlun and Jinhui Liquor
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By analyzing existing cross correlation between Zhejiang Yinlun Machinery and Jinhui Liquor Co, you can compare the effects of market volatilities on Zhejiang Yinlun 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 Zhejiang Yinlun with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Yinlun and Jinhui Liquor.
Diversification Opportunities for Zhejiang Yinlun and Jinhui Liquor
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhejiang and Jinhui is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Yinlun Machinery and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Zhejiang Yinlun 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 Zhejiang Yinlun Machinery 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 Zhejiang Yinlun i.e., Zhejiang Yinlun and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Zhejiang Yinlun and Jinhui Liquor
Assuming the 90 days trading horizon Zhejiang Yinlun Machinery is expected to generate 1.12 times more return on investment than Jinhui Liquor. However, Zhejiang Yinlun is 1.12 times more volatile than Jinhui Liquor Co. It trades about 0.03 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.02 per unit of risk. If you would invest 1,515 in Zhejiang Yinlun Machinery on October 16, 2024 and sell it today you would earn a total of 394.00 from holding Zhejiang Yinlun Machinery or generate 26.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Yinlun Machinery vs. Jinhui Liquor Co
Performance |
| Timeline |
| Zhejiang Yinlun Machinery |
| Jinhui Liquor |
Zhejiang Yinlun and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Yinlun and Jinhui Liquor
The main advantage of trading using opposite Zhejiang Yinlun and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Yinlun 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.| Zhejiang Yinlun vs. Zoy Home Furnishing | Zhejiang Yinlun vs. Fiberhome Telecommunication Technologies | Zhejiang Yinlun vs. Nanxing Furniture Machinery | Zhejiang Yinlun vs. Markor International Home |
| Jinhui Liquor vs. Weichai Heavy Machinery | Jinhui Liquor vs. Shuhua Sports Co | Jinhui Liquor vs. Zhejiang Yinlun Machinery | Jinhui Liquor vs. Shenzhen Zhongzhuang Construction |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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