Correlation Between Jinhui Liquor and Shenzhen Clou
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By analyzing existing cross correlation between Jinhui Liquor Co and Shenzhen Clou Electronics, you can compare the effects of market volatilities on Jinhui Liquor and Shenzhen Clou 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 Shenzhen Clou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Shenzhen Clou.
Diversification Opportunities for Jinhui Liquor and Shenzhen Clou
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Shenzhen is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Shenzhen Clou Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Clou Electronics 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 Shenzhen Clou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Clou Electronics has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Shenzhen Clou go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Shenzhen Clou
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Shenzhen Clou. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.02 times less risky than Shenzhen Clou. The stock trades about -0.03 of its potential returns per unit of risk. The Shenzhen Clou Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 436.00 in Shenzhen Clou Electronics on August 29, 2024 and sell it today you would earn a total of 7.00 from holding Shenzhen Clou Electronics or generate 1.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Shenzhen Clou Electronics
Performance |
| Timeline |
| Jinhui Liquor |
| Shenzhen Clou Electronics |
Jinhui Liquor and Shenzhen Clou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Shenzhen Clou
The main advantage of trading using opposite Jinhui Liquor and Shenzhen Clou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Shenzhen Clou 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 Shenzhen Clou will offset losses from the drop in Shenzhen Clou's long position.| Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. Ping An Insurance | Jinhui Liquor vs. China Petroleum Chemical |
| Shenzhen Clou vs. PetroChina Co Ltd | Shenzhen Clou vs. China State Construction | Shenzhen Clou vs. China Mobile Limited | Shenzhen Clou vs. Industrial and Commercial |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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