Correlation Between Chongqing Sokon and Jiugui Liquor
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By analyzing existing cross correlation between Chongqing Sokon Ind and Jiugui Liquor Co, you can compare the effects of market volatilities on Chongqing Sokon 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 Chongqing Sokon with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sokon and Jiugui Liquor.
Diversification Opportunities for Chongqing Sokon and Jiugui Liquor
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and Jiugui is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sokon Ind and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Chongqing Sokon 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 Chongqing Sokon Ind 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 Chongqing Sokon i.e., Chongqing Sokon and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Chongqing Sokon and Jiugui Liquor
Assuming the 90 days trading horizon Chongqing Sokon Ind is expected to generate 1.27 times more return on investment than Jiugui Liquor. However, Chongqing Sokon is 1.27 times more volatile than Jiugui Liquor Co. It trades about 0.07 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.01 per unit of risk. If you would invest 8,118 in Chongqing Sokon Ind on September 14, 2024 and sell it today you would earn a total of 4,898 from holding Chongqing Sokon Ind or generate 60.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Sokon Ind vs. Jiugui Liquor Co
Performance |
| Timeline |
| Chongqing Sokon Ind |
| Jiugui Liquor |
Chongqing Sokon and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sokon and Jiugui Liquor
The main advantage of trading using opposite Chongqing Sokon and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sokon 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.| Chongqing Sokon vs. Jiugui Liquor Co | Chongqing Sokon vs. Caihong Display Devices | Chongqing Sokon vs. Anji Foodstuff Co | Chongqing Sokon vs. Anhui Gujing Distillery |
| Jiugui Liquor vs. Rongsheng Petrochemical Co | Jiugui Liquor vs. Huaxia Fund Management | Jiugui Liquor vs. Jilin Chemical Fibre | Jiugui Liquor vs. Union Semiconductor Co |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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