Correlation Between Guangzhou Haozhi and Jiugui Liquor
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By analyzing existing cross correlation between Guangzhou Haozhi Industrial and Jiugui Liquor Co, you can compare the effects of market volatilities on Guangzhou Haozhi 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 Haozhi with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Haozhi and Jiugui Liquor.
Diversification Opportunities for Guangzhou Haozhi and Jiugui Liquor
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and Jiugui is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Haozhi Industrial 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 Haozhi 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 Haozhi Industrial 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 Haozhi i.e., Guangzhou Haozhi and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Guangzhou Haozhi and Jiugui Liquor
Assuming the 90 days trading horizon Guangzhou Haozhi Industrial is expected to generate 1.58 times more return on investment than Jiugui Liquor. However, Guangzhou Haozhi is 1.58 times more volatile than Jiugui Liquor Co. It trades about -0.25 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.5 per unit of risk. If you would invest 2,298 in Guangzhou Haozhi Industrial on October 14, 2024 and sell it today you would lose (441.00) from holding Guangzhou Haozhi Industrial or give up 19.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Haozhi Industrial vs. Jiugui Liquor Co
Performance |
| Timeline |
| Guangzhou Haozhi Ind |
| Jiugui Liquor |
Guangzhou Haozhi and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Haozhi and Jiugui Liquor
The main advantage of trading using opposite Guangzhou Haozhi and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Haozhi 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 Haozhi vs. Beijing Yanjing Brewery | Guangzhou Haozhi vs. Anhui Transport Consulting | Guangzhou Haozhi vs. Chengdu Xinzhu RoadBridge | Guangzhou Haozhi vs. Shaanxi Construction Machinery |
| Jiugui Liquor vs. Western Metal Materials | Jiugui Liquor vs. FSPG Hi Tech Co | Jiugui Liquor vs. Shenyang Huitian Thermal | Jiugui Liquor vs. Ningbo Jintian Copper |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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