Correlation Between Guangdong Jinma and Jinhui Liquor
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By analyzing existing cross correlation between Guangdong Jinma Entertainment and Jinhui Liquor Co, you can compare the effects of market volatilities on Guangdong Jinma and Jinhui 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 Guangdong Jinma with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jinma and Jinhui Liquor.
Diversification Opportunities for Guangdong Jinma and Jinhui Liquor
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between Guangdong and Jinhui is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jinma Entertainment and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Guangdong Jinma 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 Guangdong Jinma Entertainment are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Guangdong Jinma i.e., Guangdong Jinma and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Guangdong Jinma and Jinhui Liquor
Assuming the 90 days trading horizon Guangdong Jinma Entertainment is expected to generate 1.48 times more return on investment than Jinhui Liquor. However, Guangdong Jinma is 1.48 times more volatile than Jinhui Liquor Co. It trades about 0.1 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.13 per unit of risk. If you would invest 1,664 in Guangdong Jinma Entertainment on November 27, 2024 and sell it today you would earn a total of 37.00 from holding Guangdong Jinma Entertainment or generate 2.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jinma Entertainment vs. Jinhui Liquor Co
Performance |
| Timeline |
| Guangdong Jinma Ente |
| Jinhui Liquor |
Guangdong Jinma and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jinma and Jinhui Liquor
The main advantage of trading using opposite Guangdong Jinma and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jinma position performs unexpectedly, Jinhui 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.| Guangdong Jinma vs. Nanxing Furniture Machinery | Guangdong Jinma vs. Ningxia Xiaoming Agriculture | Guangdong Jinma vs. Hubeiyichang Transportation Group | Guangdong Jinma vs. Lander Sports Development |
| Jinhui Liquor vs. Fujian Newland Computer | Jinhui Liquor vs. Wintao Communications Co | Jinhui Liquor vs. Gansu Huangtai Wine marketing | Jinhui Liquor vs. Shanghai Shibei Hi Tech |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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