Correlation Between Jinhui Liquor and Zhengping RoadBridge
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jinhui Liquor Co and Zhengping RoadBridge Constr, you can compare the effects of market volatilities on Jinhui Liquor and Zhengping RoadBridge 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 Zhengping RoadBridge. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinhui Liquor and Zhengping RoadBridge.
Diversification Opportunities for Jinhui Liquor and Zhengping RoadBridge
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jinhui and Zhengping is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Jinhui Liquor Co and Zhengping RoadBridge Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhengping RoadBridge 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 Zhengping RoadBridge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhengping RoadBridge has no effect on the direction of Jinhui Liquor i.e., Jinhui Liquor and Zhengping RoadBridge go up and down completely randomly.
Pair Corralation between Jinhui Liquor and Zhengping RoadBridge
Assuming the 90 days trading horizon Jinhui Liquor Co is expected to under-perform the Zhengping RoadBridge. But the stock apears to be less risky and, when comparing its historical volatility, Jinhui Liquor Co is 2.76 times less risky than Zhengping RoadBridge. The stock trades about -0.1 of its potential returns per unit of risk. The Zhengping RoadBridge Constr is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 351.00 in Zhengping RoadBridge Constr on September 25, 2024 and sell it today you would earn a total of 25.00 from holding Zhengping RoadBridge Constr or generate 7.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Jinhui Liquor Co vs. Zhengping RoadBridge Constr
Performance |
Timeline |
Jinhui Liquor |
Zhengping RoadBridge |
Jinhui Liquor and Zhengping RoadBridge Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Jinhui Liquor and Zhengping RoadBridge
The main advantage of trading using opposite Jinhui Liquor and Zhengping RoadBridge positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinhui Liquor position performs unexpectedly, Zhengping RoadBridge 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 Zhengping RoadBridge will offset losses from the drop in Zhengping RoadBridge'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 |
Zhengping RoadBridge vs. Ming Yang Smart | Zhengping RoadBridge vs. 159681 | Zhengping RoadBridge vs. 159005 | Zhengping RoadBridge vs. Loctek Ergonomic Technology |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
Other Complementary Tools
Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
Technical Analysis Check basic technical indicators and analysis based on most latest market data |