Correlation Between Jinhui Liquor and Xinjiang Communications
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By analyzing existing cross correlation between Jinhui Liquor Co and Xinjiang Communications Construction, you can compare the effects of market volatilities on Jinhui Liquor and Xinjiang Communications 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 Xinjiang Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Xinjiang Communications.
Diversification Opportunities for Jinhui Liquor and Xinjiang Communications
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Xinjiang is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Xinjiang Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Xinjiang Communications
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Xinjiang Communications. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.36 times less risky than Xinjiang Communications. The stock trades about -0.02 of its potential returns per unit of risk. The Xinjiang Communications Construction is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,279 in Xinjiang Communications Construction on October 16, 2024 and sell it today you would lose (258.00) from holding Xinjiang Communications Construction or give up 20.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Jinhui Liquor |
| Xinjiang Communications |
Jinhui Liquor and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Xinjiang Communications
The main advantage of trading using opposite Jinhui Liquor and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Xinjiang Communications 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 Xinjiang Communications will offset losses from the drop in Xinjiang Communications' long position.| Jinhui Liquor vs. Weichai Heavy Machinery | Jinhui Liquor vs. Shuhua Sports Co | Jinhui Liquor vs. Zhejiang Yinlun Machinery | Jinhui Liquor vs. Shenzhen Zhongzhuang Construction |
| Xinjiang Communications vs. Jinhui Liquor Co | Xinjiang Communications vs. Xiamen Goldenhome Co | Xinjiang Communications vs. Shanghai Shuixing Home | Xinjiang Communications vs. Hainan Airlines Co |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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