Correlation Between Cangzhou Mingzhu and Yifeng Pharmacy
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By analyzing existing cross correlation between Cangzhou Mingzhu Plastic and Yifeng Pharmacy, you can compare the effects of market volatilities on Cangzhou Mingzhu and Yifeng Pharmacy 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 Cangzhou Mingzhu with a short position of Yifeng Pharmacy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cangzhou Mingzhu and Yifeng Pharmacy.
Diversification Opportunities for Cangzhou Mingzhu and Yifeng Pharmacy
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cangzhou and Yifeng is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Cangzhou Mingzhu Plastic and Yifeng Pharmacy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yifeng Pharmacy and Cangzhou Mingzhu 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 Cangzhou Mingzhu Plastic are associated (or correlated) with Yifeng Pharmacy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yifeng Pharmacy has no effect on the direction of Cangzhou Mingzhu i.e., Cangzhou Mingzhu and Yifeng Pharmacy go up and down completely randomly.
Pair Corralation between Cangzhou Mingzhu and Yifeng Pharmacy
Assuming the 90 days trading horizon Cangzhou Mingzhu Plastic is expected to generate 0.68 times more return on investment than Yifeng Pharmacy. However, Cangzhou Mingzhu Plastic is 1.46 times less risky than Yifeng Pharmacy. It trades about 0.0 of its potential returns per unit of risk. Yifeng Pharmacy is currently generating about -0.03 per unit of risk. If you would invest 439.00 in Cangzhou Mingzhu Plastic on September 13, 2024 and sell it today you would lose (38.00) from holding Cangzhou Mingzhu Plastic or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cangzhou Mingzhu Plastic vs. Yifeng Pharmacy
Performance |
| Timeline |
| Cangzhou Mingzhu Plastic |
| Yifeng Pharmacy |
Cangzhou Mingzhu and Yifeng Pharmacy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cangzhou Mingzhu and Yifeng Pharmacy
The main advantage of trading using opposite Cangzhou Mingzhu and Yifeng Pharmacy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cangzhou Mingzhu position performs unexpectedly, Yifeng Pharmacy 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 Yifeng Pharmacy will offset losses from the drop in Yifeng Pharmacy's long position.| Cangzhou Mingzhu vs. Touchstone International Medical | Cangzhou Mingzhu vs. Blue Sail Medical | Cangzhou Mingzhu vs. Shenzhen Glory Medical | Cangzhou Mingzhu vs. Xian International Medical |
| Yifeng Pharmacy vs. China Construction Bank | Yifeng Pharmacy vs. Ping An Insurance | Yifeng Pharmacy vs. LianChuang Electronic Technology | Yifeng Pharmacy vs. YiDong Electronics 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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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