Correlation Between Fujian Nanwang and Jiugui Liquor
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By analyzing existing cross correlation between Fujian Nanwang Environment and Jiugui Liquor Co, you can compare the effects of market volatilities on Fujian Nanwang 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 Fujian Nanwang with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Nanwang and Jiugui Liquor.
Diversification Opportunities for Fujian Nanwang and Jiugui Liquor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and Jiugui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Nanwang Environment and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Fujian Nanwang 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 Fujian Nanwang Environment 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 Fujian Nanwang i.e., Fujian Nanwang and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Fujian Nanwang and Jiugui Liquor
Assuming the 90 days trading horizon Fujian Nanwang is expected to generate 2.78 times less return on investment than Jiugui Liquor. But when comparing it to its historical volatility, Fujian Nanwang Environment is 2.03 times less risky than Jiugui Liquor. It trades about 0.17 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 5,101 in Jiugui Liquor Co on September 2, 2024 and sell it today you would earn a total of 895.00 from holding Jiugui Liquor Co or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Nanwang Environment vs. Jiugui Liquor Co
Performance |
| Timeline |
| Fujian Nanwang Envir |
| Jiugui Liquor |
Fujian Nanwang and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Nanwang and Jiugui Liquor
The main advantage of trading using opposite Fujian Nanwang and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Nanwang 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.| Fujian Nanwang vs. Zijin Mining Group | Fujian Nanwang vs. Wanhua Chemical Group | Fujian Nanwang vs. Baoshan Iron Steel | Fujian Nanwang vs. Shandong Gold Mining |
| Jiugui Liquor vs. Guangdong Shenglu Telecommunication | Jiugui Liquor vs. Hangzhou Gaoxin Rubber | Jiugui Liquor vs. Xinjiang Communications Construction | Jiugui Liquor vs. Sinosteel Luonai Materials |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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