Correlation Between Jinhui Liquor and Juewei Food
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By analyzing existing cross correlation between Jinhui Liquor Co and Juewei Food Co, you can compare the effects of market volatilities on Jinhui Liquor and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Juewei Food.
Diversification Opportunities for Jinhui Liquor and Juewei Food
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Juewei is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Juewei Food go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Juewei Food
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 0.82 times more return on investment than Juewei Food. However, Jinhui Liquor Co is 1.22 times less risky than Juewei Food. It trades about -0.02 of its potential returns per unit of risk. Juewei Food Co is currently generating about -0.08 per unit of risk. If you would invest 2,343 in Jinhui Liquor Co on October 16, 2024 and sell it today you would lose (541.00) from holding Jinhui Liquor Co or give up 23.09% 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. Juewei Food Co
Performance |
| Timeline |
| Jinhui Liquor |
| Juewei Food |
Jinhui Liquor and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jinhui Liquor and Juewei Food
The main advantage of trading using opposite Jinhui Liquor and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Jinhui Liquor vs. Weichai Heavy Machinery | Jinhui Liquor vs. Shuhua Sports Co | Jinhui Liquor vs. Zhejiang Yinlun Machinery | Jinhui Liquor vs. Shenzhen Zhongzhuang Construction |
| Juewei Food vs. Jinhui Liquor Co | Juewei Food vs. Guangzhou KDT Machinery | Juewei Food vs. Shantui Construction Machinery | Juewei Food vs. Shenzhen Zhongzhuang Construction |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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