Correlation Between Jinhui Liquor and Jiangsu Yanghe
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By analyzing existing cross correlation between Jinhui Liquor Co and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Jinhui Liquor and Jiangsu Yanghe 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 Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Jiangsu Yanghe.
Diversification Opportunities for Jinhui Liquor and Jiangsu Yanghe
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Jiangsu is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery 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 Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Jiangsu Yanghe
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.29 times more return on investment than Jiangsu Yanghe. However, Jinhui Liquor is 1.29 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.03 per unit of risk. If you would invest 1,923 in Jinhui Liquor Co on October 14, 2024 and sell it today you would lose (145.00) from holding Jinhui Liquor Co or give up 7.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Jinhui Liquor |
| Jiangsu Yanghe Brewery |
Jinhui Liquor and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Jiangsu Yanghe
The main advantage of trading using opposite Jinhui Liquor and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Jiangsu Yanghe 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 Jiangsu Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Jinhui Liquor vs. Nuode Investment Co | Jinhui Liquor vs. Jointo Energy Investment | Jinhui Liquor vs. Harbin Hatou Investment | Jinhui Liquor vs. Zhongrun Resources Investment |
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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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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