Correlation Between GreenTech Environmental and Jiugui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between GreenTech Environmental Co and Jiugui Liquor Co, you can compare the effects of market volatilities on GreenTech Environmental and Jiugui Liquor 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 GreenTech Environmental with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of GreenTech Environmental and Jiugui Liquor.
Diversification Opportunities for GreenTech Environmental and Jiugui Liquor
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GreenTech and Jiugui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding GreenTech Environmental Co and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and GreenTech Environmental 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 GreenTech Environmental Co are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of GreenTech Environmental i.e., GreenTech Environmental and Jiugui Liquor go up and down completely randomly.
Pair Corralation between GreenTech Environmental and Jiugui Liquor
Assuming the 90 days trading horizon GreenTech Environmental Co is expected to generate 1.51 times more return on investment than Jiugui Liquor. However, GreenTech Environmental is 1.51 times more volatile than Jiugui Liquor Co. It trades about 0.15 of its potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.18 per unit of risk. If you would invest 1,357 in GreenTech Environmental Co on August 31, 2024 and sell it today you would earn a total of 218.00 from holding GreenTech Environmental Co or generate 16.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GreenTech Environmental Co vs. Jiugui Liquor Co
Performance |
| Timeline |
| GreenTech Environmental |
| Jiugui Liquor |
GreenTech Environmental and Jiugui Liquor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GreenTech Environmental and Jiugui Liquor
The main advantage of trading using opposite GreenTech Environmental and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GreenTech Environmental position performs unexpectedly, Jiugui Liquor 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.The idea behind GreenTech Environmental Co and Jiugui Liquor Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Jiugui Liquor vs. Sichuan Fulin Transportation | Jiugui Liquor vs. China Asset Management | Jiugui Liquor vs. Sanbo Hospital Management | Jiugui Liquor vs. Northern United Publishing |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |