Correlation Between Zhejiang Construction and Jinhui Liquor
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By analyzing existing cross correlation between Zhejiang Construction Investment and Jinhui Liquor Co, you can compare the effects of market volatilities on Zhejiang Construction 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 Construction with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Jinhui Liquor.
Diversification Opportunities for Zhejiang Construction and Jinhui Liquor
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and Jinhui is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme 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 Construction 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 Construction Investment 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 Construction i.e., Zhejiang Construction and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Jinhui Liquor
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Jinhui Liquor. In addition to that, Zhejiang Construction is 1.2 times more volatile than Jinhui Liquor Co. It trades about -0.31 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.19 per unit of volatility. If you would invest 2,000 in Jinhui Liquor Co on October 28, 2024 and sell it today you would lose (113.00) from holding Jinhui Liquor Co or give up 5.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Construction Investme vs. Jinhui Liquor Co
Performance |
| Timeline |
| Zhejiang Construction |
| Jinhui Liquor |
Zhejiang Construction and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Construction and Jinhui Liquor
The main advantage of trading using opposite Zhejiang Construction and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction 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 Construction vs. Jiangsu Jinling Sports | Zhejiang Construction vs. Citic Offshore Helicopter | Zhejiang Construction vs. Jahen Household Products | Zhejiang Construction vs. Sportsoul Co Ltd |
| Jinhui Liquor vs. Shenzhen AV Display Co | Jinhui Liquor vs. Beijing Kingsoft Office | Jinhui Liquor vs. Jiangsu Jinling Sports | Jinhui Liquor vs. Beijing Bewinner Communications |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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