Correlation Between Jonjee Hi and Wuliangye Yibin
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and Wuliangye Yibin Co, you can compare the effects of market volatilities on Jonjee Hi and Wuliangye Yibin 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 Jonjee Hi with a short position of Wuliangye Yibin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and Wuliangye Yibin.
Diversification Opportunities for Jonjee Hi and Wuliangye Yibin
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jonjee and Wuliangye is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and Wuliangye Yibin Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuliangye Yibin and Jonjee Hi 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 Jonjee Hi tech Industrial are associated (or correlated) with Wuliangye Yibin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuliangye Yibin has no effect on the direction of Jonjee Hi i.e., Jonjee Hi and Wuliangye Yibin go up and down completely randomly.
Pair Corralation between Jonjee Hi and Wuliangye Yibin
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the Wuliangye Yibin. In addition to that, Jonjee Hi is 1.13 times more volatile than Wuliangye Yibin Co. It trades about -0.05 of its total potential returns per unit of risk. Wuliangye Yibin Co is currently generating about 0.0 per unit of volatility. If you would invest 16,152 in Wuliangye Yibin Co on August 30, 2024 and sell it today you would lose (1,447) from holding Wuliangye Yibin Co or give up 8.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jonjee Hi tech Industrial vs. Wuliangye Yibin Co
Performance |
Timeline |
Jonjee Hi tech |
Wuliangye Yibin |
Jonjee Hi and Wuliangye Yibin Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jonjee Hi and Wuliangye Yibin
The main advantage of trading using opposite Jonjee Hi and Wuliangye Yibin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi position performs unexpectedly, Wuliangye Yibin 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 Wuliangye Yibin will offset losses from the drop in Wuliangye Yibin's long position.Jonjee Hi vs. Jiangsu Xinri E Vehicle | Jonjee Hi vs. Xizi Clean Energy | Jonjee Hi vs. Shaanxi Meineng Clean | Jonjee Hi vs. China National Software |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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