Correlation Between Shenzhen Kexin and Jiugui Liquor
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By analyzing existing cross correlation between Shenzhen Kexin Communication and Jiugui Liquor Co, you can compare the effects of market volatilities on Shenzhen Kexin 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 Shenzhen Kexin with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Kexin and Jiugui Liquor.
Diversification Opportunities for Shenzhen Kexin and Jiugui Liquor
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and Jiugui is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Kexin Communication and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Shenzhen Kexin 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 Shenzhen Kexin Communication 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 Shenzhen Kexin i.e., Shenzhen Kexin and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Shenzhen Kexin and Jiugui Liquor
Assuming the 90 days trading horizon Shenzhen Kexin Communication is expected to under-perform the Jiugui Liquor. But the stock apears to be less risky and, when comparing its historical volatility, Shenzhen Kexin Communication is 1.08 times less risky than Jiugui Liquor. The stock trades about -0.22 of its potential returns per unit of risk. The Jiugui Liquor Co is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,058 in Jiugui Liquor Co on September 1, 2024 and sell it today you would earn a total of 938.00 from holding Jiugui Liquor Co or generate 18.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Kexin Communication vs. Jiugui Liquor Co
Performance |
| Timeline |
| Shenzhen Kexin Commu |
| Jiugui Liquor |
Shenzhen Kexin and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Kexin and Jiugui Liquor
The main advantage of trading using opposite Shenzhen Kexin and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Kexin 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.| Shenzhen Kexin vs. Industrial and Commercial | Shenzhen Kexin vs. Kweichow Moutai Co | Shenzhen Kexin vs. Agricultural Bank of | Shenzhen Kexin vs. China Mobile Limited |
| Jiugui Liquor vs. Ningbo Jintian Copper | Jiugui Liquor vs. Dalian Thermal Power | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Westone Information Industry |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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