Correlation Between Jinhui Liquor and Anhui Transport
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By analyzing existing cross correlation between Jinhui Liquor Co and Anhui Transport Consulting, you can compare the effects of market volatilities on Jinhui Liquor and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Anhui Transport.
Diversification Opportunities for Jinhui Liquor and Anhui Transport
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jinhui and Anhui is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Anhui Transport go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Anhui Transport
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to generate 0.97 times more return on investment than Anhui Transport. However, Jinhui Liquor Co is 1.03 times less risky than Anhui Transport. It trades about -0.1 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about -0.15 per unit of risk. If you would invest 2,042 in Jinhui Liquor Co on September 25, 2024 and sell it today you would lose (81.00) from holding Jinhui Liquor Co or give up 3.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Liquor Co vs. Anhui Transport Consulting
Performance |
Timeline |
Jinhui Liquor |
Anhui Transport Cons |
Jinhui Liquor and Anhui Transport Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Liquor and Anhui Transport
The main advantage of trading using opposite Jinhui Liquor and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport'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 |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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