Correlation Between Jilin Jlu and Jiugui Liquor
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By analyzing existing cross correlation between Jilin Jlu Communication and Jiugui Liquor Co, you can compare the effects of market volatilities on Jilin Jlu 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 Jilin Jlu with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jilin Jlu and Jiugui Liquor.
Diversification Opportunities for Jilin Jlu and Jiugui Liquor
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jilin and Jiugui is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jilin Jlu 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 Jilin Jlu 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 Jilin Jlu 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 Jilin Jlu i.e., Jilin Jlu and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Jilin Jlu and Jiugui Liquor
Assuming the 90 days trading horizon Jilin Jlu is expected to generate 2.23 times less return on investment than Jiugui Liquor. In addition to that, Jilin Jlu is 1.05 times more volatile than Jiugui Liquor Co. It trades about 0.1 of its total potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.24 per unit of volatility. 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 | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jilin Jlu Communication vs. Jiugui Liquor Co
Performance |
| Timeline |
| Jilin Jlu Communication |
| Jiugui Liquor |
Jilin Jlu and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jilin Jlu and Jiugui Liquor
The main advantage of trading using opposite Jilin Jlu and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jilin Jlu 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.| Jilin Jlu vs. Yangmei Chemical Co | Jilin Jlu vs. Longxing Chemical Stock | Jilin Jlu vs. Tianjin Capital Environmental | Jilin Jlu vs. Anyang Iron Steel |
| 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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