Correlation Between Jiangsu Yanghe and Grandblue Environment
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Grandblue Environment Co, you can compare the effects of market volatilities on Jiangsu Yanghe and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Grandblue Environment.
Diversification Opportunities for Jiangsu Yanghe and Grandblue Environment
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Grandblue is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Grandblue Environment go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Grandblue Environment
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Grandblue Environment. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 1.17 times less risky than Grandblue Environment. The stock trades about -0.04 of its potential returns per unit of risk. The Grandblue Environment Co is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest 2,152 in Grandblue Environment Co on September 25, 2024 and sell it today you would earn a total of 192.00 from holding Grandblue Environment Co or generate 8.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. Grandblue Environment Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Grandblue Environment |
Jiangsu Yanghe and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Grandblue Environment
The main advantage of trading using opposite Jiangsu Yanghe and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China Mobile Limited | Jiangsu Yanghe vs. CNOOC Limited | Jiangsu Yanghe vs. Ping An Insurance |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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