Correlation Between Jinhui Liquor and Chongqing Rural
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By analyzing existing cross correlation between Jinhui Liquor Co and Chongqing Rural Commercial, you can compare the effects of market volatilities on Jinhui Liquor and Chongqing Rural 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 Chongqing Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Chongqing Rural.
Diversification Opportunities for Jinhui Liquor and Chongqing Rural
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Chongqing is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Chongqing Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Rural Comm 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 Chongqing Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Rural Comm has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Chongqing Rural go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Chongqing Rural
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.42 times more return on investment than Chongqing Rural. However, Jinhui Liquor is 1.42 times more volatile than Chongqing Rural Commercial. It trades about 0.13 of its potential returns per unit of risk. Chongqing Rural Commercial is currently generating about 0.13 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 | Significant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Chongqing Rural Commercial
Performance |
| Timeline |
| Jinhui Liquor |
| Chongqing Rural Comm |
Jinhui Liquor and Chongqing Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Chongqing Rural
The main advantage of trading using opposite Jinhui Liquor and Chongqing Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Chongqing Rural 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 Chongqing Rural will offset losses from the drop in Chongqing Rural'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 |
| Chongqing Rural vs. Zhengzhou Coal Mining | Chongqing Rural vs. Hainan Mining Co | Chongqing Rural vs. Jinhui Mining Co | Chongqing Rural vs. Easyhome New Retail |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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