Correlation Between Jiugui Liquor and Iat Automobile
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By analyzing existing cross correlation between Jiugui Liquor Co and Iat Automobile Technology, you can compare the effects of market volatilities on Jiugui Liquor and Iat Automobile 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 Iat Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Iat Automobile.
Diversification Opportunities for Jiugui Liquor and Iat Automobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Iat is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Iat Automobile Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Iat Automobile Technology 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 Iat Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Iat Automobile Technology has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Iat Automobile go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Iat Automobile
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to generate 0.65 times more return on investment than Iat Automobile. However, Jiugui Liquor Co is 1.53 times less risky than Iat Automobile. It trades about 0.0 of its potential returns per unit of risk. Iat Automobile Technology is currently generating about -0.13 per unit of risk. If you would invest 5,665 in Jiugui Liquor Co on September 25, 2024 and sell it today you would lose (35.00) from holding Jiugui Liquor Co or give up 0.62% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jiugui Liquor Co vs. Iat Automobile Technology
Performance |
Timeline |
Jiugui Liquor |
Iat Automobile Technology |
Jiugui Liquor and Iat Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiugui Liquor and Iat Automobile
The main advantage of trading using opposite Jiugui Liquor and Iat Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Iat Automobile 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 Iat Automobile will offset losses from the drop in Iat Automobile'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 |
Iat Automobile vs. Hainan Airlines Co | Iat Automobile vs. Fuzhou Rockchip Electronics | Iat Automobile vs. Dongnan Electronics Co | Iat Automobile vs. Suzhou Xingye Material |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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