Correlation Between Juewei Food and Gansu Jiu
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By analyzing existing cross correlation between Juewei Food Co and Gansu Jiu Steel, you can compare the effects of market volatilities on Juewei Food and Gansu Jiu 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 Juewei Food with a short position of Gansu Jiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Gansu Jiu.
Diversification Opportunities for Juewei Food and Gansu Jiu
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Juewei and Gansu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Gansu Jiu Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Jiu Steel and Juewei Food 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 Juewei Food Co are associated (or correlated) with Gansu Jiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Jiu Steel has no effect on the direction of Juewei Food i.e., Juewei Food and Gansu Jiu go up and down completely randomly.
Pair Corralation between Juewei Food and Gansu Jiu
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Gansu Jiu. In addition to that, Juewei Food is 1.69 times more volatile than Gansu Jiu Steel. It trades about -0.54 of its total potential returns per unit of risk. Gansu Jiu Steel is currently generating about -0.59 per unit of volatility. If you would invest 180.00 in Gansu Jiu Steel on October 15, 2024 and sell it today you would lose (35.00) from holding Gansu Jiu Steel or give up 19.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Gansu Jiu Steel
Performance |
| Timeline |
| Juewei Food |
| Gansu Jiu Steel |
Juewei Food and Gansu Jiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Gansu Jiu
The main advantage of trading using opposite Juewei Food and Gansu Jiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food position performs unexpectedly, Gansu Jiu 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 Gansu Jiu will offset losses from the drop in Gansu Jiu's long position.| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
| Gansu Jiu vs. Xinjiang Baodi Mining | Gansu Jiu vs. Ningbo Jintian Copper | Gansu Jiu vs. Kangxin New Materials | Gansu Jiu vs. Chengtun Mining Group |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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