Correlation Between Guangdong Brandmax and Jiugui Liquor
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and Jiugui Liquor Co, you can compare the effects of market volatilities on Guangdong Brandmax 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 Guangdong Brandmax with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and Jiugui Liquor.
Diversification Opportunities for Guangdong Brandmax and Jiugui Liquor
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and Jiugui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Guangdong Brandmax 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 Brandmax Marketing 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 Guangdong Brandmax i.e., Guangdong Brandmax and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and Jiugui Liquor
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.13 times more return on investment than Jiugui Liquor. However, Guangdong Brandmax is 1.13 times more volatile than Jiugui Liquor Co. It trades about 0.23 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.21 per unit of risk. If you would invest 818.00 in Guangdong Brandmax Marketing on September 5, 2024 and sell it today you would earn a total of 165.00 from holding Guangdong Brandmax Marketing or generate 20.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. Jiugui Liquor Co
Performance |
| Timeline |
| Guangdong Brandmax |
| Jiugui Liquor |
Guangdong Brandmax and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and Jiugui Liquor
The main advantage of trading using opposite Guangdong Brandmax and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax 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.| Guangdong Brandmax vs. Pengxin International Mining | Guangdong Brandmax vs. Guocheng Mining Co | Guangdong Brandmax vs. Liaoning Chengda Biotechnology | Guangdong Brandmax vs. Yili Chuanning Biotechnology |
| Jiugui Liquor vs. Industrial and Commercial | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. China Construction Bank | Jiugui Liquor vs. Bank of China |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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