Correlation Between Jinhui Liquor and Anhui Tongguan
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By analyzing existing cross correlation between Jinhui Liquor Co and Anhui Tongguan Copper, you can compare the effects of market volatilities on Jinhui Liquor and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Anhui Tongguan.
Diversification Opportunities for Jinhui Liquor and Anhui Tongguan
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Anhui is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Anhui Tongguan
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 2.45 times less risky than Anhui Tongguan. The stock trades about -0.19 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,133 in Anhui Tongguan Copper on October 28, 2024 and sell it today you would lose (48.00) from holding Anhui Tongguan Copper or give up 4.24% 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. Anhui Tongguan Copper
Performance |
| Timeline |
| Jinhui Liquor |
| Anhui Tongguan Copper |
Jinhui Liquor and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Anhui Tongguan
The main advantage of trading using opposite Jinhui Liquor and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| Jinhui Liquor vs. Shenzhen AV Display Co | Jinhui Liquor vs. Beijing Kingsoft Office | Jinhui Liquor vs. Jiangsu Jinling Sports | Jinhui Liquor vs. Beijing Bewinner Communications |
| Anhui Tongguan vs. Dhc Software Co | Anhui Tongguan vs. Financial Street Holdings | Anhui Tongguan vs. GRG Banking Equipment | Anhui Tongguan vs. Linewell Software 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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