Correlation Between Jinhui Liquor and Jinhui Mining
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By analyzing existing cross correlation between Jinhui Liquor Co and Jinhui Mining Co, you can compare the effects of market volatilities on Jinhui Liquor and Jinhui Mining 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 Jinhui Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Jinhui Mining.
Diversification Opportunities for Jinhui Liquor and Jinhui Mining
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Jinhui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Jinhui Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Mining 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 Jinhui Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Mining has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Jinhui Mining go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Jinhui Mining
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 1.46 times more return on investment than Jinhui Mining. However, Jinhui Liquor is 1.46 times more volatile than Jinhui Mining Co. It trades about 0.06 of its potential returns per unit of risk. Jinhui Mining Co is currently generating about 0.03 per unit of risk. If you would invest 1,717 in Jinhui Liquor Co on October 24, 2024 and sell it today you would earn a total of 183.00 from holding Jinhui Liquor Co or generate 10.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Jinhui Mining Co
Performance |
| Timeline |
| Jinhui Liquor |
| Jinhui Mining |
Jinhui Liquor and Jinhui Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Jinhui Mining
The main advantage of trading using opposite Jinhui Liquor and Jinhui Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Jinhui Mining 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 Jinhui Mining will offset losses from the drop in Jinhui Mining's long position.| Jinhui Liquor vs. Ming Yang Smart | Jinhui Liquor vs. 159681 | Jinhui Liquor vs. 159005 | Jinhui Liquor vs. Loctek Ergonomic Technology |
| Jinhui Mining vs. Jinhui Liquor Co | Jinhui Mining vs. Hubeiyichang Transportation Group | Jinhui Mining vs. Shanghai Broadband Technology | Jinhui Mining vs. Chengdu Xinzhu RoadBridge |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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