Correlation Between Ye Chiu and Jiugui Liquor
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By analyzing existing cross correlation between Ye Chiu Metal and Jiugui Liquor Co, you can compare the effects of market volatilities on Ye Chiu 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 Ye Chiu with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ye Chiu and Jiugui Liquor.
Diversification Opportunities for Ye Chiu and Jiugui Liquor
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 601388 and Jiugui is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Ye Chiu Metal and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Ye Chiu 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 Ye Chiu Metal 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 Ye Chiu i.e., Ye Chiu and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Ye Chiu and Jiugui Liquor
Assuming the 90 days trading horizon Ye Chiu Metal is expected to generate 0.9 times more return on investment than Jiugui Liquor. However, Ye Chiu Metal is 1.11 times less risky than Jiugui Liquor. It trades about -0.3 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about -0.36 per unit of risk. If you would invest 284.00 in Ye Chiu Metal on October 11, 2024 and sell it today you would lose (43.00) from holding Ye Chiu Metal or give up 15.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ye Chiu Metal vs. Jiugui Liquor Co
Performance |
| Timeline |
| Ye Chiu Metal |
| Jiugui Liquor |
Ye Chiu and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ye Chiu and Jiugui Liquor
The main advantage of trading using opposite Ye Chiu and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ye Chiu 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.| Ye Chiu vs. Zhangjiagang Freetrade Science | Ye Chiu vs. Luolai Home Textile | Ye Chiu vs. Jason Furniture | Ye Chiu vs. Jiangsu Yanghe Brewery |
| Jiugui Liquor vs. Changchun BCHT Biotechnology | Jiugui Liquor vs. Anhui Huaheng Biotechnology | Jiugui Liquor vs. Sichuan Yahua Industrial | Jiugui Liquor vs. Ye Chiu Metal |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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