Correlation Between Jinhui Liquor and Shanghai Pudong
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By analyzing existing cross correlation between Jinhui Liquor Co and Shanghai Pudong Development, you can compare the effects of market volatilities on Jinhui Liquor and Shanghai Pudong 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 Shanghai Pudong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Shanghai Pudong.
Diversification Opportunities for Jinhui Liquor and Shanghai Pudong
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Shanghai is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Shanghai Pudong Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Pudong Deve 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 Shanghai Pudong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Pudong Deve has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Shanghai Pudong go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Shanghai Pudong
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.89 times more return on investment than Shanghai Pudong. However, Jinhui Liquor is 1.89 times more volatile than Shanghai Pudong Development. It trades about 0.13 of its potential returns per unit of risk. Shanghai Pudong Development is currently generating about 0.12 per unit of risk. If you would invest 1,635 in Jinhui Liquor Co on September 12, 2024 and sell it today you would earn a total of 431.00 from holding Jinhui Liquor Co or generate 26.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.28% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Shanghai Pudong Development
Performance |
| Timeline |
| Jinhui Liquor |
| Shanghai Pudong Deve |
Jinhui Liquor and Shanghai Pudong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Shanghai Pudong
The main advantage of trading using opposite Jinhui Liquor and Shanghai Pudong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Shanghai Pudong 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 Shanghai Pudong will offset losses from the drop in Shanghai Pudong's long position.| Jinhui Liquor vs. China Life Insurance | Jinhui Liquor vs. Cinda Securities Co | Jinhui Liquor vs. Piotech Inc A | Jinhui Liquor vs. Dongxing Sec Co |
| Shanghai Pudong vs. Sino Platinum Metals Co | Shanghai Pudong vs. Keda Clean Energy | Shanghai Pudong vs. GRINM Semiconductor Materials | Shanghai Pudong vs. Tongling Nonferrous Metals |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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