Correlation Between Jinhui Liquor and Vats Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhui Liquor Co and Vats Liquor Chain, you can compare the effects of market volatilities on Jinhui Liquor and Vats Liquor 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 Vats Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Vats Liquor.
Diversification Opportunities for Jinhui Liquor and Vats Liquor
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Vats is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Vats Liquor Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vats Liquor Chain 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 Vats Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vats Liquor Chain has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Vats Liquor go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Vats Liquor
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Vats Liquor. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 2.35 times less risky than Vats Liquor. The stock trades about -0.36 of its potential returns per unit of risk. The Vats Liquor Chain is currently generating about -0.13 of returns per unit of risk over similar time horizon. If you would invest 1,827 in Vats Liquor Chain on October 11, 2024 and sell it today you would lose (210.00) from holding Vats Liquor Chain or give up 11.49% 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. Vats Liquor Chain
Performance |
| Timeline |
| Jinhui Liquor |
| Vats Liquor Chain |
Jinhui Liquor and Vats Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Vats Liquor
The main advantage of trading using opposite Jinhui Liquor and Vats Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Vats Liquor 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 Vats Liquor will offset losses from the drop in Vats Liquor's long position.| Jinhui Liquor vs. Sunny Loan Top | Jinhui Liquor vs. Xinxiang Chemical Fiber | Jinhui Liquor vs. Wuxi Chemical Equipment | Jinhui Liquor vs. Semiconductor Manufacturing Intl |
| Vats Liquor vs. INKON Life Technology | Vats Liquor vs. Hygon Information Technology | Vats Liquor vs. Eyebright Medical Technology | Vats Liquor vs. Zhongfu Information |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Stocks Directory Find actively traded stocks across global markets | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |