Correlation Between Grandblue Environment and JuneYao Dairy
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By analyzing existing cross correlation between Grandblue Environment Co and JuneYao Dairy Co, you can compare the effects of market volatilities on Grandblue Environment and JuneYao Dairy 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 Grandblue Environment with a short position of JuneYao Dairy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grandblue Environment and JuneYao Dairy.
Diversification Opportunities for Grandblue Environment and JuneYao Dairy
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grandblue and JuneYao is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Grandblue Environment Co and JuneYao Dairy Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JuneYao Dairy and Grandblue Environment 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 Grandblue Environment Co are associated (or correlated) with JuneYao Dairy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JuneYao Dairy has no effect on the direction of Grandblue Environment i.e., Grandblue Environment and JuneYao Dairy go up and down completely randomly.
Pair Corralation between Grandblue Environment and JuneYao Dairy
Assuming the 90 days trading horizon Grandblue Environment is expected to generate 1.34 times less return on investment than JuneYao Dairy. But when comparing it to its historical volatility, Grandblue Environment Co is 3.7 times less risky than JuneYao Dairy. It trades about 0.29 of its potential returns per unit of risk. JuneYao Dairy Co is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 595.00 in JuneYao Dairy Co on September 26, 2024 and sell it today you would earn a total of 57.00 from holding JuneYao Dairy Co or generate 9.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grandblue Environment Co vs. JuneYao Dairy Co
Performance |
| Timeline |
| Grandblue Environment |
| JuneYao Dairy |
Grandblue Environment and JuneYao Dairy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grandblue Environment and JuneYao Dairy
The main advantage of trading using opposite Grandblue Environment and JuneYao Dairy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grandblue Environment position performs unexpectedly, JuneYao Dairy 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 JuneYao Dairy will offset losses from the drop in JuneYao Dairy's long position.The idea behind Grandblue Environment Co and JuneYao Dairy Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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