Correlation Between Chongqing Brewery and Jiangsu Pacific
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By analyzing existing cross correlation between Chongqing Brewery Co and Jiangsu Pacific Quartz, you can compare the effects of market volatilities on Chongqing Brewery and Jiangsu Pacific 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 Chongqing Brewery with a short position of Jiangsu Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Jiangsu Pacific.
Diversification Opportunities for Chongqing Brewery and Jiangsu Pacific
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chongqing and Jiangsu is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Jiangsu Pacific Quartz in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Pacific Quartz and Chongqing Brewery 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 Chongqing Brewery Co are associated (or correlated) with Jiangsu Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Pacific Quartz has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Jiangsu Pacific go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Jiangsu Pacific
Assuming the 90 days trading horizon Chongqing Brewery is expected to generate 2.73 times less return on investment than Jiangsu Pacific. But when comparing it to its historical volatility, Chongqing Brewery Co is 3.32 times less risky than Jiangsu Pacific. It trades about 0.22 of its potential returns per unit of risk. Jiangsu Pacific Quartz is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 2,607 in Jiangsu Pacific Quartz on January 2, 2025 and sell it today you would earn a total of 465.00 from holding Jiangsu Pacific Quartz or generate 17.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Jiangsu Pacific Quartz
Performance |
| Timeline |
| Chongqing Brewery |
| Jiangsu Pacific Quartz |
Chongqing Brewery and Jiangsu Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Jiangsu Pacific
The main advantage of trading using opposite Chongqing Brewery and Jiangsu Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Jiangsu Pacific 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 Jiangsu Pacific will offset losses from the drop in Jiangsu Pacific's long position.| Chongqing Brewery vs. Holitech Technology Co | Chongqing Brewery vs. Zotye Automobile Co | Chongqing Brewery vs. Danhua Chemical Technology | Chongqing Brewery vs. Cultural Investment Holdings |
| Jiangsu Pacific vs. Agricultural Bank of | Jiangsu Pacific vs. Industrial and Commercial | Jiangsu Pacific vs. Bank of China | Jiangsu Pacific vs. China Construction Bank |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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