Correlation Between Keda Clean and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Keda Clean Energy and Jinhui Liquor Co, you can compare the effects of market volatilities on Keda Clean 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 Keda Clean with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Keda Clean and Jinhui Liquor.
Diversification Opportunities for Keda Clean and Jinhui Liquor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Keda and Jinhui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Keda Clean Energy and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Keda Clean 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 Keda Clean Energy 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 Keda Clean i.e., Keda Clean and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Keda Clean and Jinhui Liquor
Assuming the 90 days trading horizon Keda Clean is expected to generate 3.04 times less return on investment than Jinhui Liquor. But when comparing it to its historical volatility, Keda Clean Energy is 1.43 times less risky than Jinhui Liquor. It trades about 0.05 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,048 in Jinhui Liquor Co on September 1, 2024 and sell it today you would earn a total of 115.00 from holding Jinhui Liquor Co or generate 5.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Keda Clean Energy vs. Jinhui Liquor Co
Performance |
| Timeline |
| Keda Clean Energy |
| Jinhui Liquor |
Keda Clean and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Keda Clean and Jinhui Liquor
The main advantage of trading using opposite Keda Clean and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Keda Clean 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.| Keda Clean vs. Tianjin Pengling Rubber | Keda Clean vs. Hangzhou Gaoxin Rubber | Keda Clean vs. Caihong Display Devices | Keda Clean vs. Suzhou Xingye Material |
| Jinhui Liquor vs. China Petroleum Chemical | Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China State Construction | Jinhui Liquor vs. China Railway Group |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Transaction History View history of all your transactions and understand their impact on performance | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |