Correlation Between CIMC Vehicles and Jinhui Liquor
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By analyzing existing cross correlation between CIMC Vehicles Co and Jinhui Liquor Co, you can compare the effects of market volatilities on CIMC Vehicles 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 CIMC Vehicles with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMC Vehicles and Jinhui Liquor.
Diversification Opportunities for CIMC Vehicles and Jinhui Liquor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CIMC and Jinhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles 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 CIMC Vehicles i.e., CIMC Vehicles and Jinhui Liquor go up and down completely randomly.
Pair Corralation between CIMC Vehicles and Jinhui Liquor
Assuming the 90 days trading horizon CIMC Vehicles is expected to generate 1.34 times less return on investment than Jinhui Liquor. But when comparing it to its historical volatility, CIMC Vehicles Co is 1.09 times less risky than Jinhui Liquor. It trades about 0.11 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 1,635 in Jinhui Liquor Co on September 12, 2024 and sell it today you would earn a total of 431.00 from holding Jinhui Liquor Co or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMC Vehicles Co vs. Jinhui Liquor Co
Performance |
| Timeline |
| CIMC Vehicles |
| Jinhui Liquor |
CIMC Vehicles and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMC Vehicles and Jinhui Liquor
The main advantage of trading using opposite CIMC Vehicles and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMC Vehicles 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.| CIMC Vehicles vs. Agricultural Bank of | CIMC Vehicles vs. Industrial and Commercial | CIMC Vehicles vs. Bank of China | CIMC Vehicles vs. PetroChina Co Ltd |
| Jinhui Liquor vs. Fujian Longzhou Transportation | Jinhui Liquor vs. Anhui Gujing Distillery | Jinhui Liquor vs. Silkroad Visual Technology | Jinhui Liquor vs. Heilongjiang Transport Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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