Correlation Between Jiangsu Yanghe and Zhongtong Guomai
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By analyzing existing cross correlation between Jiangsu Yanghe Brewery and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Jiangsu Yanghe and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and Zhongtong Guomai.
Diversification Opportunities for Jiangsu Yanghe and Zhongtong Guomai
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangsu and Zhongtong is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and Zhongtong Guomai
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the Zhongtong Guomai. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 1.68 times less risky than Zhongtong Guomai. The stock trades about 0.0 of its potential returns per unit of risk. The Zhongtong Guomai Communication is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 442.00 in Zhongtong Guomai Communication on September 2, 2024 and sell it today you would earn a total of 679.00 from holding Zhongtong Guomai Communication or generate 153.62% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| Zhongtong Guomai Com |
Jiangsu Yanghe and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and Zhongtong Guomai
The main advantage of trading using opposite Jiangsu Yanghe and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Jiangsu Yanghe vs. China Petroleum Chemical | Jiangsu Yanghe vs. PetroChina Co Ltd | Jiangsu Yanghe vs. China State Construction | Jiangsu Yanghe vs. China Railway Group |
| Zhongtong Guomai vs. China Petroleum Chemical | Zhongtong Guomai vs. PetroChina Co Ltd | Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. China Railway Group |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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