Correlation Between Jiangsu Zhongtian and Jiugui Liquor
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By analyzing existing cross correlation between Jiangsu Zhongtian Technology and Jiugui Liquor Co, you can compare the effects of market volatilities on Jiangsu Zhongtian and Jiugui 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 Jiangsu Zhongtian with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Zhongtian and Jiugui Liquor.
Diversification Opportunities for Jiangsu Zhongtian and Jiugui Liquor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Jiugui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Zhongtian Technology and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Jiangsu Zhongtian 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 Jiangsu Zhongtian Technology are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Jiangsu Zhongtian i.e., Jiangsu Zhongtian and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Jiangsu Zhongtian and Jiugui Liquor
Assuming the 90 days trading horizon Jiangsu Zhongtian Technology is expected to generate 0.92 times more return on investment than Jiugui Liquor. However, Jiangsu Zhongtian Technology is 1.09 times less risky than Jiugui Liquor. It trades about 0.01 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.07 per unit of risk. If you would invest 1,509 in Jiangsu Zhongtian Technology on October 29, 2024 and sell it today you would lose (112.00) from holding Jiangsu Zhongtian Technology or give up 7.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Zhongtian Technology vs. Jiugui Liquor Co
Performance |
| Timeline |
| Jiangsu Zhongtian |
| Jiugui Liquor |
Jiangsu Zhongtian and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Zhongtian and Jiugui Liquor
The main advantage of trading using opposite Jiangsu Zhongtian and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Zhongtian position performs unexpectedly, Jiugui 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.| Jiangsu Zhongtian vs. Mango Excellent Media | Jiangsu Zhongtian vs. Shenzhen Urban Transport | Jiangsu Zhongtian vs. Fujian Longzhou Transportation | Jiangsu Zhongtian vs. Chengdu B ray Media |
| Jiugui Liquor vs. Chengdu Kanghua Biological | Jiugui Liquor vs. Beijing Wantai Biological | Jiugui Liquor vs. Suzhou Novoprotein Scientific | Jiugui Liquor vs. Aluminum Corp of |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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