Correlation Between Guangzhou Jointas and Jiugui Liquor
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By analyzing existing cross correlation between Guangzhou Jointas Chemical and Jiugui Liquor Co, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and Jiugui Liquor.
Diversification Opportunities for Guangzhou Jointas and Jiugui Liquor
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Jiugui is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Guangzhou Jointas 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 Guangzhou Jointas Chemical 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 Guangzhou Jointas i.e., Guangzhou Jointas and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and Jiugui Liquor
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to generate 0.97 times more return on investment than Jiugui Liquor. However, Guangzhou Jointas Chemical is 1.03 times less risky than Jiugui Liquor. It trades about -0.02 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.07 per unit of risk. If you would invest 849.00 in Guangzhou Jointas Chemical on December 4, 2024 and sell it today you would lose (302.00) from holding Guangzhou Jointas Chemical or give up 35.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. Jiugui Liquor Co
Performance |
| Timeline |
| Guangzhou Jointas |
| Jiugui Liquor |
Guangzhou Jointas and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and Jiugui Liquor
The main advantage of trading using opposite Guangzhou Jointas and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.| Guangzhou Jointas vs. Digiwin Software Co | Guangzhou Jointas vs. Dareway Software Co | Guangzhou Jointas vs. Xiangpiaopiao Food Co | Guangzhou Jointas vs. Shanghai Ziyan Foods |
| Jiugui Liquor vs. Harvest Fund Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Sunny Loan Top | Jiugui Liquor vs. Beijing Jiaman Dress |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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