Correlation Between Jinhui Liquor and Jangho Group
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By analyzing existing cross correlation between Jinhui Liquor Co and Jangho Group Co, you can compare the effects of market volatilities on Jinhui Liquor and Jangho Group 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 Jangho Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Jangho Group.
Diversification Opportunities for Jinhui Liquor and Jangho Group
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Jangho is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Jangho Group Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jangho Group 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 Jangho Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jangho Group has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Jangho Group go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Jangho Group
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.06 times more return on investment than Jangho Group. However, Jinhui Liquor is 1.06 times more volatile than Jangho Group Co. It trades about -0.01 of its potential returns per unit of risk. Jangho Group Co is currently generating about -0.01 per unit of risk. If you would invest 2,598 in Jinhui Liquor Co on September 12, 2024 and sell it today you would lose (532.00) from holding Jinhui Liquor Co or give up 20.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Jangho Group Co
Performance |
| Timeline |
| Jinhui Liquor |
| Jangho Group |
Jinhui Liquor and Jangho Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Jangho Group
The main advantage of trading using opposite Jinhui Liquor and Jangho Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Jangho Group 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 Jangho Group will offset losses from the drop in Jangho Group's long position.| Jinhui Liquor vs. Fujian Longzhou Transportation | Jinhui Liquor vs. Anhui Gujing Distillery | Jinhui Liquor vs. Silkroad Visual Technology | Jinhui Liquor vs. Heilongjiang Transport Development |
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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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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