Correlation Between Yili Chuanning and Hubei Jumpcan
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By analyzing existing cross correlation between Yili Chuanning Biotechnology and Hubei Jumpcan Pharmaceutical, you can compare the effects of market volatilities on Yili Chuanning and Hubei Jumpcan 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 Yili Chuanning with a short position of Hubei Jumpcan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yili Chuanning and Hubei Jumpcan.
Diversification Opportunities for Yili Chuanning and Hubei Jumpcan
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yili and Hubei is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Yili Chuanning Biotechnology and Hubei Jumpcan Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Jumpcan Pharma and Yili Chuanning 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 Yili Chuanning Biotechnology are associated (or correlated) with Hubei Jumpcan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Jumpcan Pharma has no effect on the direction of Yili Chuanning i.e., Yili Chuanning and Hubei Jumpcan go up and down completely randomly.
Pair Corralation between Yili Chuanning and Hubei Jumpcan
Assuming the 90 days trading horizon Yili Chuanning Biotechnology is expected to under-perform the Hubei Jumpcan. In addition to that, Yili Chuanning is 1.07 times more volatile than Hubei Jumpcan Pharmaceutical. It trades about -0.22 of its total potential returns per unit of risk. Hubei Jumpcan Pharmaceutical is currently generating about -0.06 per unit of volatility. If you would invest 3,074 in Hubei Jumpcan Pharmaceutical on September 5, 2024 and sell it today you would lose (105.00) from holding Hubei Jumpcan Pharmaceutical or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yili Chuanning Biotechnology vs. Hubei Jumpcan Pharmaceutical
Performance |
| Timeline |
| Yili Chuanning Biote |
| Hubei Jumpcan Pharma |
Yili Chuanning and Hubei Jumpcan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yili Chuanning and Hubei Jumpcan
The main advantage of trading using opposite Yili Chuanning and Hubei Jumpcan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yili Chuanning position performs unexpectedly, Hubei Jumpcan 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 Hubei Jumpcan will offset losses from the drop in Hubei Jumpcan's long position.| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. Shenzhen Mindray Bio Medical | Yili Chuanning vs. Jiangsu Pacific Quartz | Yili Chuanning vs. G bits Network Technology |
| Hubei Jumpcan vs. Lonkey Industrial Co | Hubei Jumpcan vs. Gem Year Industrial Co | Hubei Jumpcan vs. Longmaster Information Tech | Hubei Jumpcan vs. Dawning Information Industry |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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