Correlation Between Changchun Faway and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Changchun Faway Automobile and Jinhui Liquor Co, you can compare the effects of market volatilities on Changchun Faway 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 Changchun Faway with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Changchun Faway and Jinhui Liquor.
Diversification Opportunities for Changchun Faway and Jinhui Liquor
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Changchun and Jinhui is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Changchun Faway Automobile and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Changchun Faway 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 Changchun Faway Automobile 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 Changchun Faway i.e., Changchun Faway and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Changchun Faway and Jinhui Liquor
Assuming the 90 days trading horizon Changchun Faway Automobile is expected to generate 0.66 times more return on investment than Jinhui Liquor. However, Changchun Faway Automobile is 1.5 times less risky than Jinhui Liquor. It trades about 0.2 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.13 per unit of risk. If you would invest 732.00 in Changchun Faway Automobile on September 12, 2024 and sell it today you would earn a total of 217.00 from holding Changchun Faway Automobile or generate 29.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Changchun Faway Automobile vs. Jinhui Liquor Co
Performance |
| Timeline |
| Changchun Faway Auto |
| Jinhui Liquor |
Changchun Faway and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Changchun Faway and Jinhui Liquor
The main advantage of trading using opposite Changchun Faway and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Changchun Faway 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.| Changchun Faway vs. Lutian Machinery Co | Changchun Faway vs. PetroChina Co Ltd | Changchun Faway vs. Bank of China | Changchun Faway vs. Gansu Jiu Steel |
| Jinhui Liquor vs. Fujian Longzhou Transportation | Jinhui Liquor vs. Anhui Gujing Distillery | Jinhui Liquor vs. Silkroad Visual Technology | Jinhui Liquor vs. Heilongjiang Transport Development |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |