Correlation Between Guizhou Chanhen and Jinhui Liquor
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By analyzing existing cross correlation between Guizhou Chanhen Chemical and Jinhui Liquor Co, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and Jinhui Liquor.
Diversification Opportunities for Guizhou Chanhen and Jinhui Liquor
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Guizhou and Jinhui is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and Jinhui Liquor
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 1.12 times more return on investment than Jinhui Liquor. However, Guizhou Chanhen is 1.12 times more volatile than Jinhui Liquor Co. It trades about 0.0 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 2,750 in Guizhou Chanhen Chemical on November 1, 2024 and sell it today you would lose (510.00) from holding Guizhou Chanhen Chemical or give up 18.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. Jinhui Liquor Co
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| Jinhui Liquor |
Guizhou Chanhen and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and Jinhui Liquor
The main advantage of trading using opposite Guizhou Chanhen and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Eastroc Beverage Group | Guizhou Chanhen vs. Anji Foodstuff Co | Guizhou Chanhen vs. Youyou Foods Co | Guizhou Chanhen vs. Humanwell Healthcare Group |
| Jinhui Liquor vs. Dazhong Transportation Group | Jinhui Liquor vs. Beijing Seeyon Internet | Jinhui Liquor vs. Xizi Clean Energy | Jinhui Liquor vs. Shenzhen Urban Transport |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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