Correlation Between Wuhan Yangtze and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wuhan Yangtze Communication and Jinhui Liquor Co, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and Jinhui Liquor.
Diversification Opportunities for Wuhan Yangtze and Jinhui Liquor
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and Jinhui is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and Jinhui Liquor
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.15 times more return on investment than Jinhui Liquor. However, Wuhan Yangtze is 2.15 times more volatile than Jinhui Liquor Co. It trades about 0.22 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.08 per unit of risk. If you would invest 1,963 in Wuhan Yangtze Communication on August 29, 2024 and sell it today you would earn a total of 622.00 from holding Wuhan Yangtze Communication or generate 31.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. Jinhui Liquor Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| Jinhui Liquor |
Wuhan Yangtze and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and Jinhui Liquor
The main advantage of trading using opposite Wuhan Yangtze and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. China State Construction | Wuhan Yangtze vs. Huafa Industrial Co | Wuhan Yangtze vs. China International Capital | Wuhan Yangtze vs. Kweichow Moutai Co |
| Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. Ping An Insurance | Jinhui Liquor vs. China Petroleum Chemical |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |