Correlation Between Chengdu Xinzhu and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and Jinhui Liquor Co, you can compare the effects of market volatilities on Chengdu Xinzhu and Jinhui 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 Chengdu Xinzhu with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and Jinhui Liquor.
Diversification Opportunities for Chengdu Xinzhu and Jinhui Liquor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chengdu and Jinhui is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge are associated (or correlated) with Jinhui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinhui Liquor has no effect on the direction of Chengdu Xinzhu i.e., Chengdu Xinzhu and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and Jinhui Liquor
Assuming the 90 days trading horizon Chengdu Xinzhu RoadBridge is expected to generate 1.07 times more return on investment than Jinhui Liquor. However, Chengdu Xinzhu is 1.07 times more volatile than Jinhui Liquor Co. It trades about 0.21 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about 0.13 per unit of risk. If you would invest 381.00 in Chengdu Xinzhu RoadBridge on September 12, 2024 and sell it today you would earn a total of 207.00 from holding Chengdu Xinzhu RoadBridge or generate 54.33% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. Jinhui Liquor Co
Performance |
Timeline |
Chengdu Xinzhu RoadBridge |
Jinhui Liquor |
Chengdu Xinzhu and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chengdu Xinzhu and Jinhui Liquor
The main advantage of trading using opposite Chengdu Xinzhu and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu position performs unexpectedly, Jinhui 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 Jinhui Liquor will offset losses from the drop in Jinhui Liquor's long position.Chengdu Xinzhu vs. Agricultural Bank of | Chengdu Xinzhu vs. Industrial and Commercial | Chengdu Xinzhu vs. Bank of China | Chengdu Xinzhu vs. PetroChina Co Ltd |
Jinhui Liquor vs. Fujian Longzhou Transportation | Jinhui Liquor vs. Anhui Gujing Distillery | Jinhui Liquor vs. Silkroad Visual Technology | Jinhui Liquor vs. Heilongjiang Transport Development |
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
Transaction History View history of all your transactions and understand their impact on performance | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |