Correlation Between Yangmei Chemical and Jiugui Liquor
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By analyzing existing cross correlation between Yangmei Chemical Co and Jiugui Liquor Co, you can compare the effects of market volatilities on Yangmei Chemical 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 Yangmei Chemical with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yangmei Chemical and Jiugui Liquor.
Diversification Opportunities for Yangmei Chemical and Jiugui Liquor
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yangmei and Jiugui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Yangmei Chemical Co and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Yangmei Chemical 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 Yangmei Chemical Co 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 Yangmei Chemical i.e., Yangmei Chemical and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Yangmei Chemical and Jiugui Liquor
Assuming the 90 days trading horizon Yangmei Chemical Co is expected to under-perform the Jiugui Liquor. In addition to that, Yangmei Chemical is 1.03 times more volatile than Jiugui Liquor Co. It trades about -0.02 of its total potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.0 per unit of volatility. If you would invest 6,693 in Jiugui Liquor Co on September 5, 2024 and sell it today you would lose (700.00) from holding Jiugui Liquor Co or give up 10.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yangmei Chemical Co vs. Jiugui Liquor Co
Performance |
| Timeline |
| Yangmei Chemical |
| Jiugui Liquor |
Yangmei Chemical and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yangmei Chemical and Jiugui Liquor
The main advantage of trading using opposite Yangmei Chemical and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yangmei Chemical 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.| Yangmei Chemical vs. Sichuan Jinshi Technology | Yangmei Chemical vs. FSPG Hi Tech Co | Yangmei Chemical vs. Wuhan Yangtze Communication | Yangmei Chemical vs. Fujian Newland Computer |
| Jiugui Liquor vs. Industrial and Commercial | Jiugui Liquor vs. Agricultural Bank of | Jiugui Liquor vs. China Construction Bank | Jiugui Liquor vs. Bank of China |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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