Correlation Between Shanghai Jinfeng and INKON Life
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and INKON Life Technology, you can compare the effects of market volatilities on Shanghai Jinfeng and INKON Life 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 Shanghai Jinfeng with a short position of INKON Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and INKON Life.
Diversification Opportunities for Shanghai Jinfeng and INKON Life
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and INKON is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and INKON Life Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on INKON Life Technology and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with INKON Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of INKON Life Technology has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and INKON Life go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and INKON Life
Assuming the 90 days trading horizon Shanghai Jinfeng Wine is expected to generate 1.17 times more return on investment than INKON Life. However, Shanghai Jinfeng is 1.17 times more volatile than INKON Life Technology. It trades about 0.22 of its potential returns per unit of risk. INKON Life Technology is currently generating about 0.04 per unit of risk. If you would invest 538.00 in Shanghai Jinfeng Wine on September 5, 2024 and sell it today you would earn a total of 72.00 from holding Shanghai Jinfeng Wine or generate 13.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. INKON Life Technology
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| INKON Life Technology |
Shanghai Jinfeng and INKON Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and INKON Life
The main advantage of trading using opposite Shanghai Jinfeng and INKON Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, INKON Life 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 INKON Life will offset losses from the drop in INKON Life's long position.| Shanghai Jinfeng vs. Tonghua Grape Wine | Shanghai Jinfeng vs. Jiangsu Jinling Sports | Shanghai Jinfeng vs. Guangzhou KingTeller Technology | Shanghai Jinfeng vs. Jinling Hotel Corp |
| INKON Life vs. Industrial and Commercial | INKON Life vs. China Construction Bank | INKON Life vs. Bank of China | INKON Life vs. Agricultural Bank 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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