Correlation Between Jinhui Liquor and Dalian Zeus
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By analyzing existing cross correlation between Jinhui Liquor Co and Dalian Zeus Entertainment, you can compare the effects of market volatilities on Jinhui Liquor and Dalian Zeus 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 Dalian Zeus. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Dalian Zeus.
Diversification Opportunities for Jinhui Liquor and Dalian Zeus
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Dalian is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Dalian Zeus Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dalian Zeus Entertainment 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 Dalian Zeus. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dalian Zeus Entertainment has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Dalian Zeus go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Dalian Zeus
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 12.73 times less return on investment than Dalian Zeus. But when comparing it to its historical volatility, Jinhui Liquor Co is 1.93 times less risky than Dalian Zeus. It trades about 0.05 of its potential returns per unit of risk. Dalian Zeus Entertainment is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 371.00 in Dalian Zeus Entertainment on September 4, 2024 and sell it today you would earn a total of 168.00 from holding Dalian Zeus Entertainment or generate 45.28% 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. Dalian Zeus Entertainment
Performance |
| Timeline |
| Jinhui Liquor |
| Dalian Zeus Entertainment |
Jinhui Liquor and Dalian Zeus Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Dalian Zeus
The main advantage of trading using opposite Jinhui Liquor and Dalian Zeus positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Dalian Zeus 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 Dalian Zeus will offset losses from the drop in Dalian Zeus' long position.| Jinhui Liquor vs. Industrial and Commercial | Jinhui Liquor vs. Agricultural Bank of | Jinhui Liquor vs. China Construction Bank | Jinhui Liquor vs. Bank of China |
| Dalian Zeus vs. Lutian Machinery Co | Dalian Zeus vs. China Longyuan Power | Dalian Zeus vs. PetroChina Co Ltd | Dalian Zeus vs. Bank of China |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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