Correlation Between Zhonghong Pulin and Jiangsu Yanghe
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Zhonghong Pulin and Jiangsu Yanghe 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 Zhonghong Pulin with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Jiangsu Yanghe.
Diversification Opportunities for Zhonghong Pulin and Jiangsu Yanghe
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhonghong and Jiangsu is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Zhonghong Pulin 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 Zhonghong Pulin Medical are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Zhonghong Pulin i.e., Zhonghong Pulin and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Jiangsu Yanghe
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to generate 1.75 times more return on investment than Jiangsu Yanghe. However, Zhonghong Pulin is 1.75 times more volatile than Jiangsu Yanghe Brewery. It trades about 0.0 of its potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.08 per unit of risk. If you would invest 1,470 in Zhonghong Pulin Medical on October 25, 2024 and sell it today you would lose (233.00) from holding Zhonghong Pulin Medical or give up 15.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhonghong Pulin Medical vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Zhonghong Pulin Medical |
| Jiangsu Yanghe Brewery |
Zhonghong Pulin and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhonghong Pulin and Jiangsu Yanghe
The main advantage of trading using opposite Zhonghong Pulin and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin position performs unexpectedly, Jiangsu Yanghe 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 Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Zhonghong Pulin vs. Agricultural Bank of | Zhonghong Pulin vs. Industrial and Commercial | Zhonghong Pulin vs. Bank of China | Zhonghong Pulin vs. China Construction Bank |
| Jiangsu Yanghe vs. Agricultural Bank of | Jiangsu Yanghe vs. Postal Savings Bank | Jiangsu Yanghe vs. Bank of Communications | Jiangsu Yanghe vs. China Merchants Bank |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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