Correlation Between Jiangsu Hoperun and Chongqing Brewery
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By analyzing existing cross correlation between Jiangsu Hoperun Software and Chongqing Brewery Co, you can compare the effects of market volatilities on Jiangsu Hoperun and Chongqing Brewery 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 Jiangsu Hoperun with a short position of Chongqing Brewery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Hoperun and Chongqing Brewery.
Diversification Opportunities for Jiangsu Hoperun and Chongqing Brewery
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Jiangsu and Chongqing is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Hoperun Software and Chongqing Brewery Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Brewery and Jiangsu Hoperun 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 Jiangsu Hoperun Software are associated (or correlated) with Chongqing Brewery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Brewery has no effect on the direction of Jiangsu Hoperun i.e., Jiangsu Hoperun and Chongqing Brewery go up and down completely randomly.
Pair Corralation between Jiangsu Hoperun and Chongqing Brewery
Assuming the 90 days trading horizon Jiangsu Hoperun Software is expected to generate 1.96 times more return on investment than Chongqing Brewery. However, Jiangsu Hoperun is 1.96 times more volatile than Chongqing Brewery Co. It trades about 0.06 of its potential returns per unit of risk. Chongqing Brewery Co is currently generating about -0.06 per unit of risk. If you would invest 2,059 in Jiangsu Hoperun Software on October 14, 2024 and sell it today you would earn a total of 2,447 from holding Jiangsu Hoperun Software or generate 118.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Hoperun Software vs. Chongqing Brewery Co
Performance |
| Timeline |
| Jiangsu Hoperun Software |
| Chongqing Brewery |
Jiangsu Hoperun and Chongqing Brewery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Hoperun and Chongqing Brewery
The main advantage of trading using opposite Jiangsu Hoperun and Chongqing Brewery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Hoperun position performs unexpectedly, Chongqing Brewery 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 Chongqing Brewery will offset losses from the drop in Chongqing Brewery's long position.| Jiangsu Hoperun vs. Tianshui Huatian Technology | Jiangsu Hoperun vs. Digiwin Software Co | Jiangsu Hoperun vs. Bonree Data Technology | Jiangsu Hoperun vs. Emdoor Information Co |
| Chongqing Brewery vs. Dhc Software Co | Chongqing Brewery vs. Omnijoi Media Corp | Chongqing Brewery vs. Beijing Enlight Media | Chongqing Brewery vs. Jiangsu Hoperun Software |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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