Correlation Between Jiugui Liquor and Jinsanjiang Silicon
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By analyzing existing cross correlation between Jiugui Liquor Co and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Jiugui Liquor and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiugui Liquor and Jinsanjiang Silicon.
Diversification Opportunities for Jiugui Liquor and Jinsanjiang Silicon
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiugui and Jinsanjiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Jiugui Liquor Co and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Jiugui Liquor i.e., Jiugui Liquor and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Jiugui Liquor and Jinsanjiang Silicon
Assuming the 90 days trading horizon Jiugui Liquor Co is expected to under-perform the Jinsanjiang Silicon. But the stock apears to be less risky and, when comparing its historical volatility, Jiugui Liquor Co is 1.35 times less risky than Jinsanjiang Silicon. The stock trades about -0.06 of its potential returns per unit of risk. The Jinsanjiang Silicon Material is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,182 in Jinsanjiang Silicon Material on September 26, 2024 and sell it today you would earn a total of 66.00 from holding Jinsanjiang Silicon Material or generate 5.58% 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. Jinsanjiang Silicon Material
Performance |
Timeline |
Jiugui Liquor |
Jinsanjiang Silicon |
Jiugui Liquor and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jiugui Liquor and Jinsanjiang Silicon
The main advantage of trading using opposite Jiugui Liquor and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiugui Liquor position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Shandong Gold Mining |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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