Correlation Between Sichuan Yahua and Jiugui Liquor
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Jiugui Liquor Co, you can compare the effects of market volatilities on Sichuan Yahua 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 Sichuan Yahua with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Jiugui Liquor.
Diversification Opportunities for Sichuan Yahua and Jiugui Liquor
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sichuan and Jiugui is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Sichuan Yahua 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 Sichuan Yahua Industrial 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 Sichuan Yahua i.e., Sichuan Yahua and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Jiugui Liquor
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.1 times more return on investment than Jiugui Liquor. However, Sichuan Yahua is 1.1 times more volatile than Jiugui Liquor Co. It trades about -0.14 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.36 per unit of risk. If you would invest 1,264 in Sichuan Yahua Industrial on October 11, 2024 and sell it today you would lose (120.00) from holding Sichuan Yahua Industrial or give up 9.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. Jiugui Liquor Co
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| Jiugui Liquor |
Sichuan Yahua and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and Jiugui Liquor
The main advantage of trading using opposite Sichuan Yahua and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua 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.| Sichuan Yahua vs. Allwin Telecommunication Co | Sichuan Yahua vs. Jilin Jlu Communication | Sichuan Yahua vs. Bank of Communications | Sichuan Yahua vs. JuneYao Dairy Co |
| Jiugui Liquor vs. Changchun BCHT Biotechnology | Jiugui Liquor vs. Anhui Huaheng Biotechnology | Jiugui Liquor vs. Sichuan Yahua Industrial | Jiugui Liquor vs. Ye Chiu Metal |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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