Correlation Between Konfoong Materials and Jiugui Liquor
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By analyzing existing cross correlation between Konfoong Materials International and Jiugui Liquor Co, you can compare the effects of market volatilities on Konfoong Materials 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 Konfoong Materials with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Konfoong Materials and Jiugui Liquor.
Diversification Opportunities for Konfoong Materials and Jiugui Liquor
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Konfoong and Jiugui is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Konfoong Materials Internation and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Konfoong Materials 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 Konfoong Materials International 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 Konfoong Materials i.e., Konfoong Materials and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Konfoong Materials and Jiugui Liquor
Assuming the 90 days trading horizon Konfoong Materials International is expected to generate 0.9 times more return on investment than Jiugui Liquor. However, Konfoong Materials International is 1.11 times less risky than Jiugui Liquor. It trades about -0.11 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.28 per unit of risk. If you would invest 7,248 in Konfoong Materials International on October 19, 2024 and sell it today you would lose (435.00) from holding Konfoong Materials International or give up 6.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Konfoong Materials Internation vs. Jiugui Liquor Co
Performance |
| Timeline |
| Konfoong Materials |
| Jiugui Liquor |
Konfoong Materials and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Konfoong Materials and Jiugui Liquor
The main advantage of trading using opposite Konfoong Materials and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Konfoong Materials 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.| Konfoong Materials vs. Jiugui Liquor Co | Konfoong Materials vs. Luyin Investment Group | Konfoong Materials vs. Kunwu Jiuding Investment | Konfoong Materials vs. JCHX Mining Management |
| Jiugui Liquor vs. Guangdong Jingyi Metal | Jiugui Liquor vs. Ye Chiu Metal | Jiugui Liquor vs. CITIC Metal Co | Jiugui Liquor vs. Tongyu Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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