Correlation Between Jiangsu Pacific and Yili Chuanning
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By analyzing existing cross correlation between Jiangsu Pacific Quartz and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Jiangsu Pacific and Yili Chuanning 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 Jiangsu Pacific with a short position of Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Pacific and Yili Chuanning.
Diversification Opportunities for Jiangsu Pacific and Yili Chuanning
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Yili is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Pacific Quartz and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote and Jiangsu Pacific 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 Jiangsu Pacific Quartz are associated (or correlated) with Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Jiangsu Pacific i.e., Jiangsu Pacific and Yili Chuanning go up and down completely randomly.
Pair Corralation between Jiangsu Pacific and Yili Chuanning
Assuming the 90 days trading horizon Jiangsu Pacific Quartz is expected to generate 1.12 times more return on investment than Yili Chuanning. However, Jiangsu Pacific is 1.12 times more volatile than Yili Chuanning Biotechnology. It trades about 0.04 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.22 per unit of risk. If you would invest 2,993 in Jiangsu Pacific Quartz on September 5, 2024 and sell it today you would earn a total of 43.00 from holding Jiangsu Pacific Quartz or generate 1.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Pacific Quartz vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Jiangsu Pacific Quartz |
| Yili Chuanning Biote |
Jiangsu Pacific and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Pacific and Yili Chuanning
The main advantage of trading using opposite Jiangsu Pacific and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Pacific position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning's long position.| Jiangsu Pacific vs. Tianjin Capital Environmental | Jiangsu Pacific vs. Jiangxi JDL Environmental | Jiangsu Pacific vs. Aofu Environmental Technology | Jiangsu Pacific vs. Jiahe Foods Industry |
| Yili Chuanning vs. Kweichow Moutai Co | Yili Chuanning vs. Shenzhen Mindray Bio Medical | Yili Chuanning vs. Jiangsu Pacific Quartz | Yili Chuanning vs. G bits Network 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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