Correlation Between Jiangsu Yanghe and Broadex Technologies
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Broadex Technologies Co, you can compare the effects of market volatilities on Jiangsu Yanghe and Broadex Technologies 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 Broadex Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Broadex Technologies.
Diversification Opportunities for Jiangsu Yanghe and Broadex Technologies
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Jiangsu and Broadex is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Broadex Technologies Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Broadex Technologies 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 Broadex Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Broadex Technologies has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Broadex Technologies go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Broadex Technologies
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to generate 0.78 times more return on investment than Broadex Technologies. However, Jiangsu Yanghe Brewery is 1.29 times less risky than Broadex Technologies. It trades about 0.02 of its potential returns per unit of risk. Broadex Technologies Co is currently generating about -0.25 per unit of risk. If you would invest 8,463 in Jiangsu Yanghe Brewery on August 31, 2024 and sell it today you would earn a total of 46.00 from holding Jiangsu Yanghe Brewery or generate 0.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Broadex Technologies Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Broadex Technologies |
Jiangsu Yanghe and Broadex Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Broadex Technologies
The main advantage of trading using opposite Jiangsu Yanghe and Broadex Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Broadex Technologies 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 Broadex Technologies will offset losses from the drop in Broadex Technologies' long position.| Jiangsu Yanghe vs. Lutian Machinery Co | Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. Bank of China | Jiangsu Yanghe vs. Gansu Jiu Steel |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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