Correlation Between Jinhui Liquor and Changchun Faway
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By analyzing existing cross correlation between Jinhui Liquor Co and Changchun Faway Automobile, you can compare the effects of market volatilities on Jinhui Liquor and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Changchun Faway.
Diversification Opportunities for Jinhui Liquor and Changchun Faway
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Changchun is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Changchun Faway go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Changchun Faway
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Changchun Faway. In addition to that, Jinhui Liquor is 1.1 times more volatile than Changchun Faway Automobile. It trades about -0.01 of its total potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.02 per unit of volatility. If you would invest 860.00 in Changchun Faway Automobile on September 4, 2024 and sell it today you would earn a total of 95.00 from holding Changchun Faway Automobile or generate 11.05% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Changchun Faway Automobile
Performance |
| Timeline |
| Jinhui Liquor |
| Changchun Faway Auto |
Jinhui Liquor and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Changchun Faway
The main advantage of trading using opposite Jinhui Liquor and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| Jinhui Liquor vs. Industrial and Commercial | Jinhui Liquor vs. Agricultural Bank of | Jinhui Liquor vs. China Construction Bank | Jinhui Liquor vs. Bank of China |
| Changchun Faway vs. Cultural Investment Holdings | Changchun Faway vs. Gome Telecom Equipment | Changchun Faway vs. Bus Online Co | Changchun Faway vs. Holitech Technology 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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