Correlation Between Gansu Yasheng and Jinhui Liquor
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By analyzing existing cross correlation between Gansu Yasheng Industrial and Jinhui Liquor Co, you can compare the effects of market volatilities on Gansu Yasheng 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 Gansu Yasheng with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Yasheng and Jinhui Liquor.
Diversification Opportunities for Gansu Yasheng and Jinhui Liquor
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Jinhui is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Yasheng Industrial and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Gansu Yasheng 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 Gansu Yasheng Industrial 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 Gansu Yasheng i.e., Gansu Yasheng and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Gansu Yasheng and Jinhui Liquor
Assuming the 90 days trading horizon Gansu Yasheng Industrial is expected to generate 0.9 times more return on investment than Jinhui Liquor. However, Gansu Yasheng Industrial is 1.11 times less risky than Jinhui Liquor. It trades about 0.22 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.05 per unit of risk. If you would invest 282.00 in Gansu Yasheng Industrial on September 4, 2024 and sell it today you would earn a total of 36.00 from holding Gansu Yasheng Industrial or generate 12.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Yasheng Industrial vs. Jinhui Liquor Co
Performance |
| Timeline |
| Gansu Yasheng Industrial |
| Jinhui Liquor |
Gansu Yasheng and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Yasheng and Jinhui Liquor
The main advantage of trading using opposite Gansu Yasheng and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Yasheng 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.| Gansu Yasheng vs. Sanbo Hospital Management | Gansu Yasheng vs. Huatian Hotel Group | Gansu Yasheng vs. Andon Health Co | Gansu Yasheng vs. Yunnan Jianzhijia Health Chain |
| Jinhui Liquor vs. Industrial and Commercial | Jinhui Liquor vs. Agricultural Bank of | Jinhui Liquor vs. China Construction Bank | Jinhui Liquor vs. Bank of China |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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