Correlation Between Jiangxi Hengda and Yili Chuanning
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Jiangxi Hengda and Yili Chuanning 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 Jiangxi Hengda with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Yili Chuanning.
Diversification Opportunities for Jiangxi Hengda and Yili Chuanning
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Jiangxi and Yili is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Yili Chuanning go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Yili Chuanning
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Yili Chuanning. In addition to that, Jiangxi Hengda is 2.79 times more volatile than Yili Chuanning Biotechnology. It trades about -0.24 of its total potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.51 per unit of volatility. If you would invest 1,361 in Yili Chuanning Biotechnology on October 12, 2024 and sell it today you would lose (215.00) from holding Yili Chuanning Biotechnology or give up 15.8% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Yili Chuanning Biote |
Jiangxi Hengda and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Yili Chuanning
The main advantage of trading using opposite Jiangxi Hengda and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Jiangxi Hengda vs. Nanjing Vishee Medical | Jiangxi Hengda vs. Xiangyu Medical Co | Jiangxi Hengda vs. Shanghai Sanyou Medical | Jiangxi Hengda vs. Medprin Regenerative Medical |
| Yili Chuanning vs. China Mobile Limited | Yili Chuanning vs. Dongfeng Automobile Co | Yili Chuanning vs. Shaanxi Meineng Clean | Yili Chuanning vs. Shenzhen Topway Video |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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