Correlation Between Guangdong Jingyi and Jiugui Liquor
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By analyzing existing cross correlation between Guangdong Jingyi Metal and Jiugui Liquor Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and Jiugui Liquor.
Diversification Opportunities for Guangdong Jingyi and Jiugui Liquor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangdong and Jiugui is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and Jiugui Liquor
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.21 times more return on investment than Jiugui Liquor. However, Guangdong Jingyi is 1.21 times more volatile than Jiugui Liquor Co. It trades about -0.15 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.28 per unit of risk. If you would invest 756.00 in Guangdong Jingyi Metal on October 19, 2024 and sell it today you would lose (81.00) from holding Guangdong Jingyi Metal or give up 10.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. Jiugui Liquor Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| Jiugui Liquor |
Guangdong Jingyi and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and Jiugui Liquor
The main advantage of trading using opposite Guangdong Jingyi and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zhejiang JIULI Hi tech | Guangdong Jingyi vs. Tianjin Hi Tech Development | Guangdong Jingyi vs. Jonjee Hi tech Industrial | Guangdong Jingyi vs. Beijing Yanjing Brewery |
| Jiugui Liquor vs. Guangdong Jingyi Metal | Jiugui Liquor vs. Ye Chiu Metal | Jiugui Liquor vs. CITIC Metal Co | Jiugui Liquor vs. Tongyu Communication |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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