Correlation Between Jiangsu Yanghe and JuneYao Dairy
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Yanghe Brewery and JuneYao Dairy Co, you can compare the effects of market volatilities on Jiangsu Yanghe and JuneYao Dairy 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 JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yanghe and JuneYao Dairy.
Diversification Opportunities for Jiangsu Yanghe and JuneYao Dairy
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangsu and JuneYao is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yanghe Brewery and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy 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 JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Jiangsu Yanghe i.e., Jiangsu Yanghe and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Jiangsu Yanghe and JuneYao Dairy
Assuming the 90 days trading horizon Jiangsu Yanghe Brewery is expected to under-perform the JuneYao Dairy. But the stock apears to be less risky and, when comparing its historical volatility, Jiangsu Yanghe Brewery is 4.35 times less risky than JuneYao Dairy. The stock trades about -0.04 of its potential returns per unit of risk. The JuneYao Dairy Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 595.00 in JuneYao Dairy Co on September 26, 2024 and sell it today you would earn a total of 57.00 from holding JuneYao Dairy Co or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yanghe Brewery vs. JuneYao Dairy Co
Performance |
| Timeline |
| Jiangsu Yanghe Brewery |
| JuneYao Dairy |
Jiangsu Yanghe and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yanghe and JuneYao Dairy
The main advantage of trading using opposite Jiangsu Yanghe and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yanghe position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy'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 |
| JuneYao Dairy vs. Nanjing Putian Telecommunications | JuneYao Dairy vs. Tianjin Realty Development | JuneYao Dairy vs. Kangyue Technology Co | JuneYao Dairy vs. Shenzhen Hifuture Electric |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |