Correlation Between Yonghui Superstores and Jiangsu Seagull
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By analyzing existing cross correlation between Yonghui Superstores Co and Jiangsu Seagull Cooling, you can compare the effects of market volatilities on Yonghui Superstores and Jiangsu Seagull 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 Yonghui Superstores with a short position of Jiangsu Seagull. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonghui Superstores and Jiangsu Seagull.
Diversification Opportunities for Yonghui Superstores and Jiangsu Seagull
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yonghui and Jiangsu is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yonghui Superstores Co and Jiangsu Seagull Cooling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Seagull Cooling and Yonghui Superstores 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 Yonghui Superstores Co are associated (or correlated) with Jiangsu Seagull. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Seagull Cooling has no effect on the direction of Yonghui Superstores i.e., Yonghui Superstores and Jiangsu Seagull go up and down completely randomly.
Pair Corralation between Yonghui Superstores and Jiangsu Seagull
Assuming the 90 days trading horizon Yonghui Superstores Co is expected to generate 1.85 times more return on investment than Jiangsu Seagull. However, Yonghui Superstores is 1.85 times more volatile than Jiangsu Seagull Cooling. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Seagull Cooling is currently generating about -0.1 per unit of risk. If you would invest 491.00 in Yonghui Superstores Co on August 31, 2024 and sell it today you would earn a total of 13.00 from holding Yonghui Superstores Co or generate 2.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonghui Superstores Co vs. Jiangsu Seagull Cooling
Performance |
| Timeline |
| Yonghui Superstores |
| Jiangsu Seagull Cooling |
Yonghui Superstores and Jiangsu Seagull Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonghui Superstores and Jiangsu Seagull
The main advantage of trading using opposite Yonghui Superstores and Jiangsu Seagull positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonghui Superstores position performs unexpectedly, Jiangsu Seagull 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 Seagull will offset losses from the drop in Jiangsu Seagull's long position.| Yonghui Superstores vs. Lutian Machinery Co | Yonghui Superstores vs. PetroChina Co Ltd | Yonghui Superstores vs. Bank of China | Yonghui Superstores vs. Gansu Jiu Steel |
| Jiangsu Seagull vs. Muyuan Foodstuff Co | Jiangsu Seagull vs. Tonghua Grape Wine | Jiangsu Seagull vs. Shenzhen Kexin Communication | Jiangsu Seagull vs. Wuhan Yangtze Communication |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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