Correlation Between Jinhui Liquor and Arrow Home
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By analyzing existing cross correlation between Jinhui Liquor Co and Arrow Home Group, you can compare the effects of market volatilities on Jinhui Liquor and Arrow Home 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 Arrow Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Arrow Home.
Diversification Opportunities for Jinhui Liquor and Arrow Home
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Arrow is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Arrow Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Arrow Home Group 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 Arrow Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Arrow Home Group has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Arrow Home go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Arrow Home
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Arrow Home. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.39 times less risky than Arrow Home. The stock trades about -0.13 of its potential returns per unit of risk. The Arrow Home Group is currently generating about 0.5 of returns per unit of risk over similar time horizon. If you would invest 752.00 in Arrow Home Group on November 27, 2024 and sell it today you would earn a total of 91.00 from holding Arrow Home Group or generate 12.1% 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. Arrow Home Group
Performance |
| Timeline |
| Jinhui Liquor |
| Arrow Home Group |
Jinhui Liquor and Arrow Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Arrow Home
The main advantage of trading using opposite Jinhui Liquor and Arrow Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Arrow Home 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 Arrow Home will offset losses from the drop in Arrow Home'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 |
| Arrow Home vs. Wuhan Yangtze Communication | Arrow Home vs. Allwin Telecommunication Co | Arrow Home vs. Runjian Communication Co | Arrow Home vs. Guangzhou Haige Communications |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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