Correlation Between Duzhe Publishing and Jiangsu Yanghe
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By analyzing existing cross correlation between Duzhe Publishing Media and Jiangsu Yanghe Brewery, you can compare the effects of market volatilities on Duzhe Publishing and Jiangsu Yanghe 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 Duzhe Publishing with a short position of Jiangsu Yanghe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Duzhe Publishing and Jiangsu Yanghe.
Diversification Opportunities for Duzhe Publishing and Jiangsu Yanghe
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Duzhe and Jiangsu is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Duzhe Publishing Media and Jiangsu Yanghe Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Yanghe Brewery and Duzhe Publishing 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 Duzhe Publishing Media are associated (or correlated) with Jiangsu Yanghe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Yanghe Brewery has no effect on the direction of Duzhe Publishing i.e., Duzhe Publishing and Jiangsu Yanghe go up and down completely randomly.
Pair Corralation between Duzhe Publishing and Jiangsu Yanghe
Assuming the 90 days trading horizon Duzhe Publishing Media is expected to under-perform the Jiangsu Yanghe. In addition to that, Duzhe Publishing is 2.86 times more volatile than Jiangsu Yanghe Brewery. It trades about -0.55 of its total potential returns per unit of risk. Jiangsu Yanghe Brewery is currently generating about -0.31 per unit of volatility. If you would invest 8,393 in Jiangsu Yanghe Brewery on October 14, 2024 and sell it today you would lose (561.00) from holding Jiangsu Yanghe Brewery or give up 6.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Duzhe Publishing Media vs. Jiangsu Yanghe Brewery
Performance |
| Timeline |
| Duzhe Publishing Media |
| Jiangsu Yanghe Brewery |
Duzhe Publishing and Jiangsu Yanghe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Duzhe Publishing and Jiangsu Yanghe
The main advantage of trading using opposite Duzhe Publishing and Jiangsu Yanghe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Duzhe Publishing position performs unexpectedly, Jiangsu Yanghe 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 Yanghe will offset losses from the drop in Jiangsu Yanghe's long position.| Duzhe Publishing vs. Anhui Shiny Electronic | Duzhe Publishing vs. Aurora Optoelectronics Co | Duzhe Publishing vs. TongFu Microelectronics Co | Duzhe Publishing vs. Leyard Optoelectronic |
| Jiangsu Yanghe vs. Ningbo Tech Bank Co | Jiangsu Yanghe vs. Duzhe Publishing Media | Jiangsu Yanghe vs. Chengdu B ray Media | Jiangsu Yanghe vs. JiShi Media 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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