Correlation Between Renxin New and Yunnan Jianzhijia
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By analyzing existing cross correlation between Renxin New Material and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Renxin New and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Renxin New and Yunnan Jianzhijia.
Diversification Opportunities for Renxin New and Yunnan Jianzhijia
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Renxin and Yunnan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Renxin New Material and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of Renxin New i.e., Renxin New and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Renxin New and Yunnan Jianzhijia
Assuming the 90 days trading horizon Renxin New Material is expected to under-perform the Yunnan Jianzhijia. But the stock apears to be less risky and, when comparing its historical volatility, Renxin New Material is 1.96 times less risky than Yunnan Jianzhijia. The stock trades about -0.03 of its potential returns per unit of risk. The Yunnan Jianzhijia Health Chain is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,266 in Yunnan Jianzhijia Health Chain on August 28, 2024 and sell it today you would earn a total of 368.00 from holding Yunnan Jianzhijia Health Chain or generate 16.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Renxin New Material vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Renxin New Material |
| Yunnan Jianzhijia |
Renxin New and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Renxin New and Yunnan Jianzhijia
The main advantage of trading using opposite Renxin New and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Renxin New position performs unexpectedly, Yunnan Jianzhijia 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 Jianzhijia will offset losses from the drop in Yunnan Jianzhijia's long position.| Renxin New vs. Zijin Mining Group | Renxin New vs. Wanhua Chemical Group | Renxin New vs. Baoshan Iron Steel | Renxin New vs. Shandong Gold Mining |
| Yunnan Jianzhijia vs. Ming Yang Smart | Yunnan Jianzhijia vs. 159681 | Yunnan Jianzhijia vs. 159005 | Yunnan Jianzhijia vs. Loctek Ergonomic Technology |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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