Correlation Between Xiamen Jihong and Vats Liquor
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By analyzing existing cross correlation between Xiamen Jihong Package and Vats Liquor Chain, you can compare the effects of market volatilities on Xiamen Jihong and Vats 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 Xiamen Jihong with a short position of Vats Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen Jihong and Vats Liquor.
Diversification Opportunities for Xiamen Jihong and Vats Liquor
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xiamen and Vats is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen Jihong Package and Vats Liquor Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vats Liquor Chain and Xiamen Jihong 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 Xiamen Jihong Package are associated (or correlated) with Vats Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vats Liquor Chain has no effect on the direction of Xiamen Jihong i.e., Xiamen Jihong and Vats Liquor go up and down completely randomly.
Pair Corralation between Xiamen Jihong and Vats Liquor
Assuming the 90 days trading horizon Xiamen Jihong is expected to generate 1.01 times less return on investment than Vats Liquor. But when comparing it to its historical volatility, Xiamen Jihong Package is 1.28 times less risky than Vats Liquor. It trades about 0.16 of its potential returns per unit of risk. Vats Liquor Chain is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,616 in Vats Liquor Chain on November 4, 2024 and sell it today you would earn a total of 105.00 from holding Vats Liquor Chain or generate 6.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen Jihong Package vs. Vats Liquor Chain
Performance |
| Timeline |
| Xiamen Jihong Package |
| Vats Liquor Chain |
Xiamen Jihong and Vats Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen Jihong and Vats Liquor
The main advantage of trading using opposite Xiamen Jihong and Vats Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen Jihong position performs unexpectedly, Vats 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 Vats Liquor will offset losses from the drop in Vats Liquor's long position.| Xiamen Jihong vs. Linkage Software Co | Xiamen Jihong vs. China Life Insurance | Xiamen Jihong vs. China Sports Industry | Xiamen Jihong vs. Inspur Software Co |
| Vats Liquor vs. Air China Ltd | Vats Liquor vs. Harbin Air Conditioning | Vats Liquor vs. Shijiazhuang Tonhe Electronics | Vats Liquor vs. Weihai Honglin Electronic |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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