Correlation Between Zhongtong Guomai and Yunnan Jianzhijia
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Yunnan Jianzhijia.
Diversification Opportunities for Zhongtong Guomai and Yunnan Jianzhijia
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Yunnan is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Yunnan Jianzhijia
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 2.76 times less return on investment than Yunnan Jianzhijia. But when comparing it to its historical volatility, Zhongtong Guomai Communication is 1.1 times less risky than Yunnan Jianzhijia. It trades about 0.09 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 2,119 in Yunnan Jianzhijia Health Chain on September 1, 2024 and sell it today you would earn a total of 513.00 from holding Yunnan Jianzhijia Health Chain or generate 24.21% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Yunnan Jianzhijia |
Zhongtong Guomai and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Yunnan Jianzhijia
The main advantage of trading using opposite Zhongtong Guomai and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
| Yunnan Jianzhijia vs. Dalian Thermal Power | Yunnan Jianzhijia vs. Ningbo Jintian Copper | Yunnan Jianzhijia vs. Pengxin International Mining | Yunnan Jianzhijia vs. Juewei Food Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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