Correlation Between Jinhui Liquor and Hainan Haiqi
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By analyzing existing cross correlation between Jinhui Liquor Co and Hainan Haiqi Transportation, you can compare the effects of market volatilities on Jinhui Liquor and Hainan Haiqi 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 Hainan Haiqi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Hainan Haiqi.
Diversification Opportunities for Jinhui Liquor and Hainan Haiqi
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Hainan is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Hainan Haiqi Transportation in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Haiqi Transpo 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 Hainan Haiqi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Haiqi Transpo has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Hainan Haiqi go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Hainan Haiqi
Assuming the 90 days trading horizon Jinhui Liquor is expected to generate 1.11 times less return on investment than Hainan Haiqi. In addition to that, Jinhui Liquor is 1.11 times more volatile than Hainan Haiqi Transportation. It trades about 0.13 of its total potential returns per unit of risk. Hainan Haiqi Transportation is currently generating about 0.16 per unit of volatility. If you would invest 1,557 in Hainan Haiqi Transportation on September 12, 2024 and sell it today you would earn a total of 483.00 from holding Hainan Haiqi Transportation or generate 31.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Liquor Co vs. Hainan Haiqi Transportation
Performance |
Timeline |
Jinhui Liquor |
Hainan Haiqi Transpo |
Jinhui Liquor and Hainan Haiqi Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Liquor and Hainan Haiqi
The main advantage of trading using opposite Jinhui Liquor and Hainan Haiqi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Hainan Haiqi 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 Hainan Haiqi will offset losses from the drop in Hainan Haiqi's long position.Jinhui Liquor vs. Fujian Longzhou Transportation | Jinhui Liquor vs. Anhui Gujing Distillery | Jinhui Liquor vs. Silkroad Visual Technology | Jinhui Liquor vs. Heilongjiang Transport Development |
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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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