Correlation Between Miracll Chemicals and Jiugui Liquor
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By analyzing existing cross correlation between Miracll Chemicals Co and Jiugui Liquor Co, you can compare the effects of market volatilities on Miracll Chemicals 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 Miracll Chemicals with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Miracll Chemicals and Jiugui Liquor.
Diversification Opportunities for Miracll Chemicals and Jiugui Liquor
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Miracll and Jiugui is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Miracll Chemicals Co and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Miracll Chemicals 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 Miracll Chemicals Co 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 Miracll Chemicals i.e., Miracll Chemicals and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Miracll Chemicals and Jiugui Liquor
Assuming the 90 days trading horizon Miracll Chemicals Co is expected to under-perform the Jiugui Liquor. But the stock apears to be less risky and, when comparing its historical volatility, Miracll Chemicals Co is 1.13 times less risky than Jiugui Liquor. The stock trades about -0.26 of its potential returns per unit of risk. The Jiugui Liquor Co is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 6,296 in Jiugui Liquor Co on September 13, 2024 and sell it today you would lose (324.00) from holding Jiugui Liquor Co or give up 5.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Miracll Chemicals Co vs. Jiugui Liquor Co
Performance |
| Timeline |
| Miracll Chemicals |
| Jiugui Liquor |
Miracll Chemicals and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Miracll Chemicals and Jiugui Liquor
The main advantage of trading using opposite Miracll Chemicals and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Miracll Chemicals 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.| Miracll Chemicals vs. Zijin Mining Group | Miracll Chemicals vs. Wanhua Chemical Group | Miracll Chemicals vs. Baoshan Iron Steel | Miracll Chemicals vs. Shandong Gold Mining |
| Jiugui Liquor vs. Ningxia Younglight Chemicals | Jiugui Liquor vs. Shengda Mining Co | Jiugui Liquor vs. Guangzhou Jointas Chemical | Jiugui Liquor vs. Miracll Chemicals Co |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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