Correlation Between Jinhui Liquor and State Grid
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By analyzing existing cross correlation between Jinhui Liquor Co and State Grid InformationCommunication, you can compare the effects of market volatilities on Jinhui Liquor and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and State Grid.
Diversification Opportunities for Jinhui Liquor and State Grid
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and State is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and State Grid go up and down completely randomly.
Pair Corralation between Jinhui Liquor and State Grid
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 1.62 times less return on investment than State Grid. But when comparing it to its historical volatility, Jinhui Liquor Co is 1.4 times less risky than State Grid. It trades about 0.1 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 2,040 in State Grid InformationCommunication on September 1, 2024 and sell it today you would earn a total of 182.00 from holding State Grid InformationCommunication or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. State Grid InformationCommunic
Performance |
| Timeline |
| Jinhui Liquor |
| State Grid Informati |
Jinhui Liquor and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and State Grid
The main advantage of trading using opposite Jinhui Liquor and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid's long position.| Jinhui Liquor vs. China Petroleum Chemical | Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China State Construction | Jinhui Liquor vs. China Railway Group |
| State Grid vs. Guangzhou KingTeller Technology | State Grid vs. Aofu Environmental Technology | State Grid vs. Guangdong Liantai Environmental | State Grid vs. Hubei Forbon Technology |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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