Correlation Between Jinhui Liquor and HMTNew Technical
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By analyzing existing cross correlation between Jinhui Liquor Co and HMTNew Technical, you can compare the effects of market volatilities on Jinhui Liquor and HMTNew Technical 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 HMTNew Technical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and HMTNew Technical.
Diversification Opportunities for Jinhui Liquor and HMTNew Technical
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and HMTNew is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and HMTNew Technical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HMTNew Technical 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 HMTNew Technical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HMTNew Technical has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and HMTNew Technical go up and down completely randomly.
Pair Corralation between Jinhui Liquor and HMTNew Technical
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the HMTNew Technical. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.42 times less risky than HMTNew Technical. The stock trades about -0.01 of its potential returns per unit of risk. The HMTNew Technical is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 3,752 in HMTNew Technical on September 12, 2024 and sell it today you would lose (702.00) from holding HMTNew Technical or give up 18.71% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
Jinhui Liquor Co vs. HMTNew Technical
Performance |
| Timeline |
| Jinhui Liquor |
| HMTNew Technical |
Jinhui Liquor and HMTNew Technical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and HMTNew Technical
The main advantage of trading using opposite Jinhui Liquor and HMTNew Technical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, HMTNew Technical 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 HMTNew Technical will offset losses from the drop in HMTNew Technical'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 |
| HMTNew Technical vs. Guangxi Wuzhou Communications | HMTNew Technical vs. Lander Sports Development | HMTNew Technical vs. Jinhui Liquor Co | HMTNew Technical vs. Guangdong Shenglu Telecommunication |
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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