Correlation Between Shandong Sinoglory and Jinhui Liquor
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By analyzing existing cross correlation between Shandong Sinoglory Health and Jinhui Liquor Co, you can compare the effects of market volatilities on Shandong Sinoglory 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 Shandong Sinoglory with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Sinoglory and Jinhui Liquor.
Diversification Opportunities for Shandong Sinoglory and Jinhui Liquor
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shandong and Jinhui is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Sinoglory Health and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Shandong Sinoglory 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 Shandong Sinoglory Health 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 Shandong Sinoglory i.e., Shandong Sinoglory and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Shandong Sinoglory and Jinhui Liquor
Assuming the 90 days trading horizon Shandong Sinoglory Health is expected to generate 1.43 times more return on investment than Jinhui Liquor. However, Shandong Sinoglory is 1.43 times more volatile than Jinhui Liquor Co. It trades about -0.1 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.16 per unit of risk. If you would invest 1,243 in Shandong Sinoglory Health on October 21, 2024 and sell it today you would lose (59.00) from holding Shandong Sinoglory Health or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Sinoglory Health vs. Jinhui Liquor Co
Performance |
| Timeline |
| Shandong Sinoglory Health |
| Jinhui Liquor |
Shandong Sinoglory and Jinhui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Sinoglory and Jinhui Liquor
The main advantage of trading using opposite Shandong Sinoglory and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Sinoglory 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.| Shandong Sinoglory vs. China Publishing Media | Shandong Sinoglory vs. Mango Excellent Media | Shandong Sinoglory vs. Zhengping RoadBridge Constr | Shandong Sinoglory vs. Zhongshan Broad Ocean Motor |
| Jinhui Liquor vs. Shenyang Blue Silver | Jinhui Liquor vs. Chenzhou Jingui Silver | Jinhui Liquor vs. Olympic Circuit Technology | Jinhui Liquor vs. Guangzhou KingTeller Technology |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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