Correlation Between Jiaozuo Wanfang and Yunnan Jianzhijia
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By analyzing existing cross correlation between Jiaozuo Wanfang Aluminum and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Jiaozuo Wanfang and Yunnan Jianzhijia 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 Jiaozuo Wanfang with a short position of Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiaozuo Wanfang and Yunnan Jianzhijia.
Diversification Opportunities for Jiaozuo Wanfang and Yunnan Jianzhijia
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Jiaozuo and Yunnan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Jiaozuo Wanfang Aluminum and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia and Jiaozuo Wanfang 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 Jiaozuo Wanfang Aluminum are associated (or correlated) with Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Jiaozuo Wanfang i.e., Jiaozuo Wanfang and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Jiaozuo Wanfang and Yunnan Jianzhijia
Assuming the 90 days trading horizon Jiaozuo Wanfang Aluminum is expected to generate 0.76 times more return on investment than Yunnan Jianzhijia. However, Jiaozuo Wanfang Aluminum is 1.32 times less risky than Yunnan Jianzhijia. It trades about 0.07 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.14 per unit of risk. If you would invest 679.00 in Jiaozuo Wanfang Aluminum on October 30, 2024 and sell it today you would earn a total of 37.00 from holding Jiaozuo Wanfang Aluminum or generate 5.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiaozuo Wanfang Aluminum vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Jiaozuo Wanfang Aluminum |
| Yunnan Jianzhijia |
Jiaozuo Wanfang and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiaozuo Wanfang and Yunnan Jianzhijia
The main advantage of trading using opposite Jiaozuo Wanfang and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiaozuo Wanfang position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Jiaozuo Wanfang vs. Namchow Food Group | Jiaozuo Wanfang vs. Yankershop Food Co | Jiaozuo Wanfang vs. Guilin Seamild Foods | Jiaozuo Wanfang vs. Sanquan Food Co |
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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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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