Correlation Between Jiangsu Xinning and Yunnan Yuntou
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Yunnan Yuntou Ecology, you can compare the effects of market volatilities on Jiangsu Xinning and Yunnan Yuntou 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 Xinning with a short position of Yunnan Yuntou. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Yunnan Yuntou.
Diversification Opportunities for Jiangsu Xinning and Yunnan Yuntou
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Yunnan is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Yunnan Yuntou Ecology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Yuntou Ecology and Jiangsu Xinning 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 Xinning Modern are associated (or correlated) with Yunnan Yuntou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Yuntou Ecology has no effect on the direction of Jiangsu Xinning i.e., Jiangsu Xinning and Yunnan Yuntou go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Yunnan Yuntou
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 2.03 times more return on investment than Yunnan Yuntou. However, Jiangsu Xinning is 2.03 times more volatile than Yunnan Yuntou Ecology. It trades about 0.23 of its potential returns per unit of risk. Yunnan Yuntou Ecology is currently generating about 0.18 per unit of risk. If you would invest 325.00 in Jiangsu Xinning Modern on August 29, 2024 and sell it today you would earn a total of 73.00 from holding Jiangsu Xinning Modern or generate 22.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Yunnan Yuntou Ecology
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Yunnan Yuntou Ecology |
Jiangsu Xinning and Yunnan Yuntou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Yunnan Yuntou
The main advantage of trading using opposite Jiangsu Xinning and Yunnan Yuntou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning position performs unexpectedly, Yunnan Yuntou 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 Yunnan Yuntou will offset losses from the drop in Yunnan Yuntou's long position.| Jiangsu Xinning vs. China Sports Industry | Jiangsu Xinning vs. ZYF Lopsking Aluminum | Jiangsu Xinning vs. Sunny Loan Top | Jiangsu Xinning vs. Anhui Transport Consulting |
| Yunnan Yuntou vs. Huafa Industrial Co | Yunnan Yuntou vs. Chengtun Mining Group | Yunnan Yuntou vs. Gansu Yasheng Industrial | Yunnan Yuntou vs. Rising Nonferrous Metals |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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