Correlation Between Chongqing Brewery and Jiangxi JDL
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Brewery Co and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Chongqing Brewery and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Brewery and Jiangxi JDL.
Diversification Opportunities for Chongqing Brewery and Jiangxi JDL
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Jiangxi is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Brewery Co and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Chongqing Brewery i.e., Chongqing Brewery and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Chongqing Brewery and Jiangxi JDL
Assuming the 90 days trading horizon Chongqing Brewery Co is expected to generate 0.96 times more return on investment than Jiangxi JDL. However, Chongqing Brewery Co is 1.04 times less risky than Jiangxi JDL. It trades about 0.02 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.0 per unit of risk. If you would invest 6,129 in Chongqing Brewery Co on September 12, 2024 and sell it today you would earn a total of 448.00 from holding Chongqing Brewery Co or generate 7.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Brewery Co vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Chongqing Brewery |
| Jiangxi JDL Environmental |
Chongqing Brewery and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Brewery and Jiangxi JDL
The main advantage of trading using opposite Chongqing Brewery and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Brewery position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Chongqing Brewery vs. China Petroleum Chemical | Chongqing Brewery vs. PetroChina Co Ltd | Chongqing Brewery vs. China State Construction | Chongqing Brewery vs. China Railway Group |
| Jiangxi JDL vs. Agricultural Bank of | Jiangxi JDL vs. Industrial and Commercial | Jiangxi JDL vs. Bank of China | Jiangxi JDL vs. PetroChina Co Ltd |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |