Correlation Between Jinhui Liquor and Ming Yang
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By analyzing existing cross correlation between Jinhui Liquor Co and Ming Yang Smart, you can compare the effects of market volatilities on Jinhui Liquor and Ming Yang 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 Ming Yang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Ming Yang.
Diversification Opportunities for Jinhui Liquor and Ming Yang
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Ming is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Ming Yang Smart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ming Yang Smart 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 Ming Yang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ming Yang Smart has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Ming Yang go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Ming Yang
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Ming Yang. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.1 times less risky than Ming Yang. The stock trades about -0.01 of its potential returns per unit of risk. The Ming Yang Smart is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,042 in Ming Yang Smart on October 18, 2024 and sell it today you would earn a total of 61.00 from holding Ming Yang Smart or generate 5.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Ming Yang Smart
Performance |
| Timeline |
| Jinhui Liquor |
| Ming Yang Smart |
Jinhui Liquor and Ming Yang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Ming Yang
The main advantage of trading using opposite Jinhui Liquor and Ming Yang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Ming Yang 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 Ming Yang will offset losses from the drop in Ming Yang's long position.| Jinhui Liquor vs. Guangdong Xiongsu Technology | Jinhui Liquor vs. Shandong Longquan Pipeline | Jinhui Liquor vs. Aba Chemicals Corp | Jinhui Liquor vs. Smartgiant Technology Co |
| Ming Yang vs. Semiconductor Manufacturing Intl | Ming Yang vs. Jinsanjiang Silicon Material | Ming Yang vs. Jinhui Liquor Co | Ming Yang vs. Hangzhou Gaoxin Rubber |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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