Correlation Between Renxin New and Yankershop Food
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By analyzing existing cross correlation between Renxin New Material and Yankershop Food Co, you can compare the effects of market volatilities on Renxin New and Yankershop Food 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 Renxin New with a short position of Yankershop Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Yankershop Food.
Diversification Opportunities for Renxin New and Yankershop Food
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Renxin and Yankershop is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and Yankershop Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yankershop Food and Renxin New 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 Renxin New Material are associated (or correlated) with Yankershop Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yankershop Food has no effect on the direction of Renxin New i.e., Renxin New and Yankershop Food go up and down completely randomly.
Pair Corralation between Renxin New and Yankershop Food
Assuming the 90 days trading horizon Renxin New Material is expected to generate 0.96 times more return on investment than Yankershop Food. However, Renxin New Material is 1.04 times less risky than Yankershop Food. It trades about 0.05 of its potential returns per unit of risk. Yankershop Food Co is currently generating about -0.05 per unit of risk. If you would invest 1,163 in Renxin New Material on August 30, 2024 and sell it today you would earn a total of 26.00 from holding Renxin New Material or generate 2.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renxin New Material vs. Yankershop Food Co
Performance |
| Timeline |
| Renxin New Material |
| Yankershop Food |
Renxin New and Yankershop Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and Yankershop Food
The main advantage of trading using opposite Renxin New and Yankershop Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New position performs unexpectedly, Yankershop Food 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 Yankershop Food will offset losses from the drop in Yankershop Food's long position.| Renxin New vs. Dalian Thermal Power | Renxin New vs. Uxi Unicomp Technology | Renxin New vs. Pengxin International Mining | Renxin New vs. Jiangxi Hengda Hi Tech |
| Yankershop Food vs. Industrial and Commercial | Yankershop Food vs. China Construction Bank | Yankershop Food vs. Agricultural Bank of | Yankershop Food vs. Bank of China |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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