Correlation Between Yunnan Jianzhijia and Guangxi Guitang
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Guangxi Guitang Group, you can compare the effects of market volatilities on Yunnan Jianzhijia and Guangxi Guitang 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 Yunnan Jianzhijia with a short position of Guangxi Guitang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Guangxi Guitang.
Diversification Opportunities for Yunnan Jianzhijia and Guangxi Guitang
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Guangxi is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Guangxi Guitang Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Guitang Group and Yunnan Jianzhijia 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 Yunnan Jianzhijia Health Chain are associated (or correlated) with Guangxi Guitang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Guitang Group has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Guangxi Guitang go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Guangxi Guitang
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the Guangxi Guitang. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 2.74 times less risky than Guangxi Guitang. The stock trades about -0.06 of its potential returns per unit of risk. The Guangxi Guitang Group is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 953.00 in Guangxi Guitang Group on September 14, 2024 and sell it today you would earn a total of 450.00 from holding Guangxi Guitang Group or generate 47.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Guangxi Guitang Group
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Guangxi Guitang Group |
Yunnan Jianzhijia and Guangxi Guitang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Guangxi Guitang
The main advantage of trading using opposite Yunnan Jianzhijia and Guangxi Guitang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Guangxi Guitang 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 Guangxi Guitang will offset losses from the drop in Guangxi Guitang's long position.| Yunnan Jianzhijia vs. Ming Yang Smart | Yunnan Jianzhijia vs. 159681 | Yunnan Jianzhijia vs. 159005 | Yunnan Jianzhijia vs. Loctek Ergonomic Technology |
| Guangxi Guitang vs. Lander Sports Development | Guangxi Guitang vs. Bomesc Offshore Engineering | Guangxi Guitang vs. China Sports Industry | Guangxi Guitang vs. Haima Automobile Group |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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