Correlation Between Shenzhen and Jinhui Liquor
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By analyzing existing cross correlation between Shenzhen AV Display Co and Jinhui Liquor Co, you can compare the effects of market volatilities on Shenzhen 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 Shenzhen with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen and Jinhui Liquor.
Diversification Opportunities for Shenzhen and Jinhui Liquor
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and Jinhui is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen AV Display Co and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Shenzhen 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 Shenzhen AV Display Co 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 Shenzhen i.e., Shenzhen and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Shenzhen and Jinhui Liquor
Assuming the 90 days trading horizon Shenzhen AV Display Co is expected to generate 1.99 times more return on investment than Jinhui Liquor. However, Shenzhen is 1.99 times more volatile than Jinhui Liquor Co. It trades about 0.19 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.19 per unit of risk. If you would invest 2,914 in Shenzhen AV Display Co on November 6, 2024 and sell it today you would earn a total of 206.00 from holding Shenzhen AV Display Co or generate 7.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen AV Display Co vs. Jinhui Liquor Co
Performance |
| Timeline |
| Shenzhen AV Display |
| Jinhui Liquor |
Shenzhen and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen and Jinhui Liquor
The main advantage of trading using opposite Shenzhen and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen 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.| Shenzhen vs. Pengxin International Mining | Shenzhen vs. Xiangyang Automobile Bearing | Shenzhen vs. Eastern Communications Co | Shenzhen vs. Guangdong Jingyi Metal |
| Jinhui Liquor vs. Chenzhou Jingui Silver | Jinhui Liquor vs. Ningbo Fangzheng Automobile | Jinhui Liquor vs. Pengxin International Mining | Jinhui Liquor vs. Sinomach Automobile 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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