Correlation Between Jinhui Liquor and Tongling Nonferrous
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhui Liquor Co and Tongling Nonferrous Metals, you can compare the effects of market volatilities on Jinhui Liquor and Tongling Nonferrous 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 Jinhui Liquor with a short position of Tongling Nonferrous. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Tongling Nonferrous.
Diversification Opportunities for Jinhui Liquor and Tongling Nonferrous
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Tongling is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Tongling Nonferrous Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongling Nonferrous and Jinhui Liquor 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 Jinhui Liquor Co are associated (or correlated) with Tongling Nonferrous. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongling Nonferrous has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Tongling Nonferrous go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Tongling Nonferrous
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Tongling Nonferrous. In addition to that, Jinhui Liquor is 1.28 times more volatile than Tongling Nonferrous Metals. It trades about -0.13 of its total potential returns per unit of risk. Tongling Nonferrous Metals is currently generating about 0.06 per unit of volatility. If you would invest 323.00 in Tongling Nonferrous Metals on November 1, 2024 and sell it today you would earn a total of 4.00 from holding Tongling Nonferrous Metals or generate 1.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Tongling Nonferrous Metals
Performance |
| Timeline |
| Jinhui Liquor |
| Tongling Nonferrous |
Jinhui Liquor and Tongling Nonferrous Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Tongling Nonferrous
The main advantage of trading using opposite Jinhui Liquor and Tongling Nonferrous positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Tongling Nonferrous 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 Tongling Nonferrous will offset losses from the drop in Tongling Nonferrous' long position.| Jinhui Liquor vs. Dazhong Transportation Group | Jinhui Liquor vs. Beijing Seeyon Internet | Jinhui Liquor vs. Xizi Clean Energy | Jinhui Liquor vs. Shenzhen Urban Transport |
| Tongling Nonferrous vs. Jinhui Liquor Co | Tongling Nonferrous vs. Zotye Automobile Co | Tongling Nonferrous vs. Ningbo Fangzheng Automobile | Tongling Nonferrous vs. Haima Automobile 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |