Correlation Between Jinhui Liquor and Orient Sec
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By analyzing existing cross correlation between Jinhui Liquor Co and Orient Sec Co, you can compare the effects of market volatilities on Jinhui Liquor and Orient Sec 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 Jinhui Liquor with a short position of Orient Sec. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Orient Sec.
Diversification Opportunities for Jinhui Liquor and Orient Sec
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jinhui and Orient is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Orient Sec Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Orient Sec and Jinhui 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 Jinhui Liquor Co are associated (or correlated) with Orient Sec. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Orient Sec has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Orient Sec go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Orient Sec
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 3.09 times less return on investment than Orient Sec. In addition to that, Jinhui Liquor is 1.2 times more volatile than Orient Sec Co. It trades about 0.03 of its total potential returns per unit of risk. Orient Sec Co is currently generating about 0.11 per unit of volatility. If you would invest 770.00 in Orient Sec Co on September 25, 2024 and sell it today you would earn a total of 275.00 from holding Orient Sec Co or generate 35.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Liquor Co vs. Orient Sec Co
Performance |
Timeline |
Jinhui Liquor |
Orient Sec |
Jinhui Liquor and Orient Sec Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Liquor and Orient Sec
The main advantage of trading using opposite Jinhui Liquor and Orient Sec positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Orient Sec 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 Orient Sec will offset losses from the drop in Orient Sec's long position.Jinhui Liquor vs. Andon Health Co | Jinhui Liquor vs. PKU HealthCare Corp | Jinhui Liquor vs. Talkweb Information System | Jinhui Liquor vs. Invengo Information Technology |
Orient Sec vs. Guangzhou Haige Communications | Orient Sec vs. Jinhui Liquor Co | Orient Sec vs. China National Software | Orient Sec vs. SUNSEA Telecommunications Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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