Correlation Between Jiangsu Yanghe and Changchun
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Changchun UP Optotech, you can compare the effects of market volatilities on Jiangsu Yanghe and Changchun 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 Jiangsu Yanghe with a short position of Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Changchun.
Diversification Opportunities for Jiangsu Yanghe and Changchun
0.71 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Changchun is 0.71. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech and Jiangsu Yanghe 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 Jiangsu Yanghe Brewery are associated (or correlated) with Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Changchun go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Changchun
Assuming the 90 days trading horizon Jiangsu Yanghe is expected to generate 4.6 times less return on investment than Changchun. But when comparing it to its historical volatility, Jiangsu Yanghe Brewery is 1.47 times less risky than Changchun. It trades about 0.07 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 2,496 in Changchun UP Optotech on September 3, 2024 and sell it today you would earn a total of 1,659 from holding Changchun UP Optotech or generate 66.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Changchun UP Optotech
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Changchun UP Optotech |
Jiangsu Yanghe and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Changchun
The main advantage of trading using opposite Jiangsu Yanghe and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Jiangsu Yanghe vs. Beijing Wantai Biological | Jiangsu Yanghe vs. Aluminum Corp of | Jiangsu Yanghe vs. COL Digital Publishing | Jiangsu Yanghe vs. Shaanxi Meineng Clean |
| Changchun vs. Focus Media Information | Changchun vs. Jiangsu Yanghe Brewery | Changchun vs. Guangdong Brandmax Marketing | Changchun vs. YLZ Information Tech |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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