Correlation Between INKON Life and Jiugui Liquor
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By analyzing existing cross correlation between INKON Life Technology and Jiugui Liquor Co, you can compare the effects of market volatilities on INKON Life 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 INKON Life with a short position of Jiugui Liquor. Check out your portfolio center. Please also check ongoing floating volatility patterns of INKON Life and Jiugui Liquor.
Diversification Opportunities for INKON Life and Jiugui Liquor
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between INKON and Jiugui is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding INKON Life Technology and Jiugui Liquor Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiugui Liquor and INKON Life 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 INKON Life Technology 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 INKON Life i.e., INKON Life and Jiugui Liquor go up and down completely randomly.
Pair Corralation between INKON Life and Jiugui Liquor
Assuming the 90 days trading horizon INKON Life Technology is expected to under-perform the Jiugui Liquor. But the stock apears to be less risky and, when comparing its historical volatility, INKON Life Technology is 1.14 times less risky than Jiugui Liquor. The stock trades about -0.13 of its potential returns per unit of risk. The Jiugui Liquor Co is currently generating about 0.0 of returns per unit of risk over similar time horizon. 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 |
INKON Life Technology vs. Jiugui Liquor Co
Performance |
Timeline |
INKON Life Technology |
Jiugui Liquor |
INKON Life and Jiugui Liquor Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with INKON Life and Jiugui Liquor
The main advantage of trading using opposite INKON Life and Jiugui Liquor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if INKON Life 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.INKON Life vs. China Publishing Media | INKON Life vs. Mango Excellent Media | INKON Life vs. China National Software | INKON Life vs. Chengdu B ray Media |
Jiugui Liquor vs. PetroChina Co Ltd | Jiugui Liquor vs. China Mobile Limited | Jiugui Liquor vs. CNOOC Limited | Jiugui 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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