Correlation Between Jinhui Liquor and Zhongshan Public
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By analyzing existing cross correlation between Jinhui Liquor Co and Zhongshan Public Utilities, you can compare the effects of market volatilities on Jinhui Liquor and Zhongshan Public 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 Zhongshan Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Zhongshan Public.
Diversification Opportunities for Jinhui Liquor and Zhongshan Public
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Zhongshan is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Zhongshan Public Utilities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongshan Public Uti 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 Zhongshan Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongshan Public Uti has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Zhongshan Public go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Zhongshan Public
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Zhongshan Public. In addition to that, Jinhui Liquor is 1.3 times more volatile than Zhongshan Public Utilities. It trades about -0.13 of its total potential returns per unit of risk. Zhongshan Public Utilities is currently generating about 0.05 per unit of volatility. If you would invest 879.00 in Zhongshan Public Utilities on November 27, 2024 and sell it today you would earn a total of 5.00 from holding Zhongshan Public Utilities or generate 0.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Zhongshan Public Utilities
Performance |
| Timeline |
| Jinhui Liquor |
| Zhongshan Public Uti |
Jinhui Liquor and Zhongshan Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Zhongshan Public
The main advantage of trading using opposite Jinhui Liquor and Zhongshan Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Zhongshan Public 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 Zhongshan Public will offset losses from the drop in Zhongshan Public's long position.| Jinhui Liquor vs. Fujian Newland Computer | Jinhui Liquor vs. Wintao Communications Co | Jinhui Liquor vs. Gansu Huangtai Wine marketing | Jinhui Liquor vs. Shanghai Shibei Hi Tech |
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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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