Correlation Between Jinhui Liquor and Shandong Publishing
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By analyzing existing cross correlation between Jinhui Liquor Co and Shandong Publishing Media, you can compare the effects of market volatilities on Jinhui Liquor and Shandong Publishing 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 Shandong Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Shandong Publishing.
Diversification Opportunities for Jinhui Liquor and Shandong Publishing
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Jinhui and Shandong is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Shandong Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Publishing Media 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 Shandong Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Publishing Media has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Shandong Publishing go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Shandong Publishing
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 0.52 times more return on investment than Shandong Publishing. However, Jinhui Liquor Co is 1.93 times less risky than Shandong Publishing. It trades about 0.05 of its potential returns per unit of risk. Shandong Publishing Media is currently generating about -0.09 per unit of risk. If you would invest 1,863 in Jinhui Liquor Co on November 4, 2024 and sell it today you would earn a total of 20.00 from holding Jinhui Liquor Co or generate 1.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Shandong Publishing Media
Performance |
| Timeline |
| Jinhui Liquor |
| Shandong Publishing Media |
Jinhui Liquor and Shandong Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Shandong Publishing
The main advantage of trading using opposite Jinhui Liquor and Shandong Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Shandong Publishing 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 Shandong Publishing will offset losses from the drop in Shandong Publishing's long position.| Jinhui Liquor vs. Beijing Kaiwen Education | Jinhui Liquor vs. Easyhome New Retail | Jinhui Liquor vs. Xiamen Goldenhome Co | Jinhui Liquor vs. Tangel Publishing |
| Shandong Publishing vs. Huaxia Fund Management | Shandong Publishing vs. China Life Insurance | Shandong Publishing vs. Sanbo Hospital Management | Shandong Publishing vs. Innovative Medical Management |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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