Correlation Between Jinhui Liquor and Hainan Haiqi
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By analyzing existing cross correlation between Jinhui Liquor Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Jinhui Liquor and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Hainan Haiqi.
Diversification Opportunities for Jinhui Liquor and Hainan Haiqi
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Hainan is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Hainan Haiqi
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Hainan Haiqi. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.29 times less risky than Hainan Haiqi. The stock trades about -0.02 of its potential returns per unit of risk. The Hainan Haiqi Transportation is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 2,627 in Hainan Haiqi Transportation on September 26, 2024 and sell it today you would lose (726.00) from holding Hainan Haiqi Transportation or give up 27.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Hainan Haiqi Transportation
Performance |
| Timeline |
| Jinhui Liquor |
| Hainan Haiqi Transpo |
Jinhui Liquor and Hainan Haiqi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Hainan Haiqi
The main advantage of trading using opposite Jinhui Liquor and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.| Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. CNOOC Limited | Jinhui Liquor vs. Ping An Insurance |
| Hainan Haiqi vs. Fiberhome Telecommunication Technologies | Hainan Haiqi vs. Jinhui Liquor Co | Hainan Haiqi vs. Zhongrun Resources Investment | Hainan Haiqi vs. Qumei Furniture Group |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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