Correlation Between Industrial and Jinhui Liquor
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By analyzing existing cross correlation between Industrial and Commercial and Jinhui Liquor Co, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Jinhui Liquor.
Diversification Opportunities for Industrial and Jinhui Liquor
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Industrial and Jinhui is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Industrial and Jinhui Liquor
Assuming the 90 days trading horizon Industrial and Commercial is expected to generate 0.52 times more return on investment than Jinhui Liquor. However, Industrial and Commercial is 1.92 times less risky than Jinhui Liquor. It trades about 0.08 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.02 per unit of risk. If you would invest 543.00 in Industrial and Commercial on August 29, 2024 and sell it today you would earn a total of 77.00 from holding Industrial and Commercial or generate 14.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Industrial and Commercial vs. Jinhui Liquor Co
Performance |
| Timeline |
| Industrial and Commercial |
| Jinhui Liquor |
Industrial and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Jinhui Liquor
The main advantage of trading using opposite Industrial and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. Sinofibers Technology Co | Industrial vs. Saurer Intelligent Technology | Industrial vs. Sinocelltech Group | Industrial vs. Dhc Software Co |
| Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. Ping An Insurance | Jinhui Liquor vs. China Petroleum Chemical |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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