Correlation Between Shanghai Pudong and Jinhui Liquor
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By analyzing existing cross correlation between Shanghai Pudong Development and Jinhui Liquor Co, you can compare the effects of market volatilities on Shanghai Pudong 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 Shanghai Pudong with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Pudong and Jinhui Liquor.
Diversification Opportunities for Shanghai Pudong and Jinhui Liquor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and Jinhui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Pudong Development and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Shanghai Pudong 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 Shanghai Pudong Development 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 Shanghai Pudong i.e., Shanghai Pudong and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Shanghai Pudong and Jinhui Liquor
Assuming the 90 days trading horizon Shanghai Pudong Development is expected to generate 0.56 times more return on investment than Jinhui Liquor. However, Shanghai Pudong Development is 1.79 times less risky than Jinhui Liquor. It trades about 0.09 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.03 per unit of risk. If you would invest 814.00 in Shanghai Pudong Development on September 12, 2024 and sell it today you would earn a total of 149.00 from holding Shanghai Pudong Development or generate 18.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Pudong Development vs. Jinhui Liquor Co
Performance |
| Timeline |
| Shanghai Pudong Deve |
| Jinhui Liquor |
Shanghai Pudong and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Pudong and Jinhui Liquor
The main advantage of trading using opposite Shanghai Pudong and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Pudong 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.| Shanghai Pudong vs. Jinhui Liquor Co | Shanghai Pudong vs. Nanjing OLO Home | Shanghai Pudong vs. Shandong Homey Aquatic | Shanghai Pudong vs. Caihong Display Devices |
| 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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