Correlation Between Sunny Loan and Jinhui Liquor
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By analyzing existing cross correlation between Sunny Loan Top and Jinhui Liquor Co, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and Jinhui Liquor.
Diversification Opportunities for Sunny Loan and Jinhui Liquor
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and Jinhui is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Sunny Loan and Jinhui Liquor
Assuming the 90 days trading horizon Sunny Loan Top is expected to under-perform the Jinhui Liquor. In addition to that, Sunny Loan is 2.57 times more volatile than Jinhui Liquor Co. It trades about -0.26 of its total potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.35 per unit of volatility. If you would invest 2,066 in Jinhui Liquor Co on October 11, 2024 and sell it today you would lose (248.00) from holding Jinhui Liquor Co or give up 12.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. Jinhui Liquor Co
Performance |
| Timeline |
| Sunny Loan Top |
| Jinhui Liquor |
Sunny Loan and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and Jinhui Liquor
The main advantage of trading using opposite Sunny Loan and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Puya Semiconductor Shanghai | Sunny Loan vs. Suzhou Oriental Semiconductor | Sunny Loan vs. Ingenic Semiconductor | Sunny Loan vs. JCHX Mining Management |
| Jinhui Liquor vs. Sunny Loan Top | Jinhui Liquor vs. Xinxiang Chemical Fiber | Jinhui Liquor vs. Wuxi Chemical Equipment | Jinhui Liquor vs. Semiconductor Manufacturing Intl |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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