Correlation Between Guangzhou Ruoyuchen and Jiugui Liquor
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By analyzing existing cross correlation between Guangzhou Ruoyuchen Information and Jiugui Liquor Co, you can compare the effects of market volatilities on Guangzhou Ruoyuchen 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 Ruoyuchen with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Ruoyuchen and Jiugui Liquor.
Diversification Opportunities for Guangzhou Ruoyuchen and Jiugui Liquor
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Jiugui is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Ruoyuchen Informatio 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 Ruoyuchen 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 Ruoyuchen Information 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 Ruoyuchen i.e., Guangzhou Ruoyuchen and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Guangzhou Ruoyuchen and Jiugui Liquor
Assuming the 90 days trading horizon Guangzhou Ruoyuchen Information is expected to generate 1.65 times more return on investment than Jiugui Liquor. However, Guangzhou Ruoyuchen is 1.65 times more volatile than Jiugui Liquor Co. It trades about 0.26 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.08 per unit of risk. If you would invest 1,873 in Guangzhou Ruoyuchen Information on September 13, 2024 and sell it today you would earn a total of 457.00 from holding Guangzhou Ruoyuchen Information or generate 24.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Ruoyuchen Informatio vs. Jiugui Liquor Co
Performance |
| Timeline |
| Guangzhou Ruoyuchen |
| Jiugui Liquor |
Guangzhou Ruoyuchen and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Ruoyuchen and Jiugui Liquor
The main advantage of trading using opposite Guangzhou Ruoyuchen and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Ruoyuchen 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 Ruoyuchen vs. BYD Co Ltd | Guangzhou Ruoyuchen vs. China Mobile Limited | Guangzhou Ruoyuchen vs. Agricultural Bank of | Guangzhou Ruoyuchen vs. Industrial and Commercial |
| Jiugui Liquor vs. Ningxia Younglight Chemicals | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Guangzhou Jointas Chemical | Jiugui Liquor vs. Miracll Chemicals Co |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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