Correlation Between Jiangsu Yanghe and Guangdong Brandmax
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Guangdong Brandmax Marketing, you can compare the effects of market volatilities on Jiangsu Yanghe and Guangdong Brandmax 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 Guangdong Brandmax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Guangdong Brandmax.
Diversification Opportunities for Jiangsu Yanghe and Guangdong Brandmax
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and Guangdong is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Guangdong Brandmax Marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Brandmax 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 Guangdong Brandmax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Brandmax has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Guangdong Brandmax go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Guangdong Brandmax
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Guangdong Brandmax. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 2.27 times less risky than Guangdong Brandmax. The stock trades about -0.02 of its potential returns per unit of risk. The Guangdong Brandmax Marketing is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,252 in Guangdong Brandmax Marketing on September 14, 2024 and sell it today you would lose (232.00) from holding Guangdong Brandmax Marketing or give up 18.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Guangdong Brandmax Marketing
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Guangdong Brandmax |
Jiangsu Yanghe and Guangdong Brandmax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Guangdong Brandmax
The main advantage of trading using opposite Jiangsu Yanghe and Guangdong Brandmax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Guangdong Brandmax 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 Guangdong Brandmax will offset losses from the drop in Guangdong Brandmax's long position.| Jiangsu Yanghe vs. Dongguan Aohai Technology | Jiangsu Yanghe vs. Northking Information Technology | Jiangsu Yanghe vs. ZYF Lopsking Aluminum | Jiangsu Yanghe vs. Kuangda Technology Group |
| Guangdong Brandmax vs. Time Publishing and | Guangdong Brandmax vs. Allwin Telecommunication Co | Guangdong Brandmax vs. Changjiang Publishing Media | Guangdong Brandmax vs. TianJin 712 Communication |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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