Correlation Between Jiugui Liquor and Jointo Energy
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By analyzing existing cross correlation between Jiugui Liquor Co and Jointo Energy Investment, you can compare the effects of market volatilities on Jiugui Liquor and Jointo Energy 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 Jiugui Liquor with a short position of Jointo Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Jointo Energy.
Diversification Opportunities for Jiugui Liquor and Jointo Energy
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Jointo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Jointo Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jointo Energy Investment and Jiugui 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 Jiugui Liquor Co are associated (or correlated) with Jointo Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jointo Energy Investment has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Jointo Energy go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Jointo Energy
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 1.53 times more return on investment than Jointo Energy. However, Jiugui Liquor is 1.53 times more volatile than Jointo Energy Investment. It trades about 0.18 of its potential returns per unit of risk. Jointo Energy Investment is currently generating about 0.14 per unit of risk. If you would invest 3,884 in Jiugui Liquor Co on September 25, 2024 and sell it today you would earn a total of 1,746 from holding Jiugui Liquor Co or generate 44.95% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiugui Liquor Co vs. Jointo Energy Investment
Performance |
Timeline |
Jiugui Liquor |
Jointo Energy Investment |
Jiugui Liquor and Jointo Energy Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiugui Liquor and Jointo Energy
The main advantage of trading using opposite Jiugui Liquor and Jointo Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Jointo Energy 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 Jointo Energy will offset losses from the drop in Jointo Energy's long position.Jiugui Liquor vs. PetroChina Co Ltd | Jiugui Liquor vs. China Mobile Limited | Jiugui Liquor vs. CNOOC Limited | Jiugui Liquor vs. Ping An Insurance |
Jointo Energy vs. GRIPM Advanced Materials | Jointo Energy vs. Tsingtao Brewery Co | Jointo Energy vs. Guangzhou Zhujiang Brewery | Jointo Energy vs. Guangzhou Dongfang Hotel |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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