Correlation Between Hubeiyichang Transportation and Jinhui Liquor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hubeiyichang Transportation Group and Jinhui Liquor Co, you can compare the effects of market volatilities on Hubeiyichang Transportation 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 Hubeiyichang Transportation with a short position of Jinhui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubeiyichang Transportation and Jinhui Liquor.
Diversification Opportunities for Hubeiyichang Transportation and Jinhui Liquor
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubeiyichang and Jinhui is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Hubeiyichang Transportation Gr and Jinhui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinhui Liquor and Hubeiyichang Transportation 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 Hubeiyichang Transportation Group 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 Hubeiyichang Transportation i.e., Hubeiyichang Transportation and Jinhui Liquor go up and down completely randomly.
Pair Corralation between Hubeiyichang Transportation and Jinhui Liquor
Assuming the 90 days trading horizon Hubeiyichang Transportation Group is expected to generate 1.04 times more return on investment than Jinhui Liquor. However, Hubeiyichang Transportation is 1.04 times more volatile than Jinhui Liquor Co. It trades about -0.02 of its potential returns per unit of risk. Jinhui Liquor Co is currently generating about -0.05 per unit of risk. If you would invest 524.00 in Hubeiyichang Transportation Group on September 24, 2024 and sell it today you would lose (7.00) from holding Hubeiyichang Transportation Group or give up 1.34% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Hubeiyichang Transportation Gr vs. Jinhui Liquor Co
Performance |
Timeline |
Hubeiyichang Transportation |
Jinhui Liquor |
Hubeiyichang Transportation and Jinhui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Hubeiyichang Transportation and Jinhui Liquor
The main advantage of trading using opposite Hubeiyichang Transportation and Jinhui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubeiyichang Transportation 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.Hubeiyichang Transportation vs. Bank of China | Hubeiyichang Transportation vs. Kweichow Moutai Co | Hubeiyichang Transportation vs. PetroChina Co Ltd | Hubeiyichang Transportation vs. Bank of Communications |
Jinhui Liquor vs. PetroChina Co Ltd | Jinhui Liquor vs. China Mobile Limited | Jinhui Liquor vs. CNOOC Limited | Jinhui Liquor vs. Ping An Insurance |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Bonds Directory Find actively traded corporate debentures issued by US companies | |
Fundamental Analysis View fundamental data based on most recent published financial statements |