Correlation Between Jinhui Liquor and Healthcare
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By analyzing existing cross correlation between Jinhui Liquor Co and Healthcare Co, you can compare the effects of market volatilities on Jinhui Liquor and Healthcare 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 Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Healthcare.
Diversification Opportunities for Jinhui Liquor and Healthcare
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Healthcare is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Healthcare Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Healthcare 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 Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Healthcare has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Healthcare go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Healthcare
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Healthcare. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 1.14 times less risky than Healthcare. The stock trades about -0.05 of its potential returns per unit of risk. The Healthcare Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 660.00 in Healthcare Co on October 14, 2024 and sell it today you would lose (28.00) from holding Healthcare Co or give up 4.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jinhui Liquor Co vs. Healthcare Co
Performance |
| Timeline |
| Jinhui Liquor |
| Healthcare |
Jinhui Liquor and Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Healthcare
The main advantage of trading using opposite Jinhui Liquor and Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Healthcare 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 Healthcare will offset losses from the drop in Healthcare's long position.| Jinhui Liquor vs. Vanfund Urban Investment | Jinhui Liquor vs. Metro Investment Development | Jinhui Liquor vs. Zhejiang Construction Investment | Jinhui Liquor vs. Xiandai Investment Co |
| Healthcare vs. Chongqing Brewery Co | Healthcare vs. Jinhui Liquor Co | Healthcare vs. Holitech Technology Co | Healthcare vs. Eyebright Medical Technology |
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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