Correlation Between Jinhui Liquor and Shandong Sinoglory
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By analyzing existing cross correlation between Jinhui Liquor Co and Shandong Sinoglory Health, you can compare the effects of market volatilities on Jinhui Liquor and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Shandong Sinoglory.
Diversification Opportunities for Jinhui Liquor and Shandong Sinoglory
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jinhui and Shandong is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Shandong Sinoglory
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Shandong Sinoglory. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.43 times less risky than Shandong Sinoglory. The stock trades about -0.16 of its potential returns per unit of risk. The Shandong Sinoglory Health is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 1,243 in Shandong Sinoglory Health on October 21, 2024 and sell it today you would lose (59.00) from holding Shandong Sinoglory Health or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Shandong Sinoglory Health
Performance |
| Timeline |
| Jinhui Liquor |
| Shandong Sinoglory Health |
Jinhui Liquor and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Shandong Sinoglory
The main advantage of trading using opposite Jinhui Liquor and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.| Jinhui Liquor vs. Shenyang Blue Silver | Jinhui Liquor vs. Chenzhou Jingui Silver | Jinhui Liquor vs. Olympic Circuit Technology | Jinhui Liquor vs. Guangzhou KingTeller Technology |
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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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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