Correlation Between Zhejiang Construction and Jiugui Liquor
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By analyzing existing cross correlation between Zhejiang Construction Investment and Jiugui Liquor Co, you can compare the effects of market volatilities on Zhejiang Construction and Jiugui 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 Zhejiang Construction with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Construction and Jiugui Liquor.
Diversification Opportunities for Zhejiang Construction and Jiugui Liquor
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhejiang and Jiugui is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Construction Investme and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and Zhejiang Construction 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 Zhejiang Construction Investment are associated (or correlated) with Jiugui Liquor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiugui Liquor has no effect on the direction of Zhejiang Construction i.e., Zhejiang Construction and Jiugui Liquor go up and down completely randomly.
Pair Corralation between Zhejiang Construction and Jiugui Liquor
Assuming the 90 days trading horizon Zhejiang Construction Investment is expected to under-perform the Jiugui Liquor. In addition to that, Zhejiang Construction is 1.5 times more volatile than Jiugui Liquor Co. It trades about -0.35 of its total potential returns per unit of risk. Jiugui Liquor Co is currently generating about 0.0 per unit of volatility. 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 | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Construction Investme vs. Jiugui Liquor Co
Performance |
Timeline |
Zhejiang Construction |
Jiugui Liquor |
Zhejiang Construction and Jiugui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Construction and Jiugui Liquor
The main advantage of trading using opposite Zhejiang Construction and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Construction position performs unexpectedly, Jiugui 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 Jiugui Liquor will offset losses from the drop in Jiugui Liquor's long position.Zhejiang Construction vs. Industrial and Commercial | Zhejiang Construction vs. Agricultural Bank of | Zhejiang Construction vs. China Construction Bank | Zhejiang Construction vs. Bank of China |
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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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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