Correlation Between Yingde Greatchem and Jiangsu Flowers
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and Jiangsu Flowers King, you can compare the effects of market volatilities on Yingde Greatchem and Jiangsu Flowers 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 Yingde Greatchem with a short position of Jiangsu Flowers. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and Jiangsu Flowers.
Diversification Opportunities for Yingde Greatchem and Jiangsu Flowers
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yingde and Jiangsu is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and Jiangsu Flowers King in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Flowers King and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with Jiangsu Flowers. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Flowers King has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and Jiangsu Flowers go up and down completely randomly.
Pair Corralation between Yingde Greatchem and Jiangsu Flowers
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 0.25 times more return on investment than Jiangsu Flowers. However, Yingde Greatchem Chemicals is 4.07 times less risky than Jiangsu Flowers. It trades about -0.05 of its potential returns per unit of risk. Jiangsu Flowers King is currently generating about -0.03 per unit of risk. If you would invest 2,353 in Yingde Greatchem Chemicals on October 24, 2024 and sell it today you would lose (64.00) from holding Yingde Greatchem Chemicals or give up 2.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. Jiangsu Flowers King
Performance |
| Timeline |
| Yingde Greatchem Che |
| Jiangsu Flowers King |
Yingde Greatchem and Jiangsu Flowers Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and Jiangsu Flowers
The main advantage of trading using opposite Yingde Greatchem and Jiangsu Flowers positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, Jiangsu Flowers 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 Jiangsu Flowers will offset losses from the drop in Jiangsu Flowers' long position.| Yingde Greatchem vs. Beijing Mainstreets Investment | Yingde Greatchem vs. Soyea Technology Co | Yingde Greatchem vs. Jointo Energy Investment | Yingde Greatchem vs. Keeson Technology Corp |
| Jiangsu Flowers vs. Do Fluoride Chemicals Co | Jiangsu Flowers vs. Andon Health Co | Jiangsu Flowers vs. Yingde Greatchem Chemicals | Jiangsu Flowers vs. Hangzhou Minsheng Healthcare |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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