Correlation Between Yunnan Jianzhijia and XinJiang GuoTong
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on Yunnan Jianzhijia and XinJiang GuoTong 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 XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and XinJiang GuoTong.
Diversification Opportunities for Yunnan Jianzhijia and XinJiang GuoTong
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and XinJiang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline 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 XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and XinJiang GuoTong
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to under-perform the XinJiang GuoTong. But the stock apears to be less risky and, when comparing its historical volatility, Yunnan Jianzhijia Health Chain is 1.53 times less risky than XinJiang GuoTong. The stock trades about -0.33 of its potential returns per unit of risk. The XinJiang GuoTong Pipeline is currently generating about -0.16 of returns per unit of risk over similar time horizon. If you would invest 959.00 in XinJiang GuoTong Pipeline on October 25, 2024 and sell it today you would lose (126.00) from holding XinJiang GuoTong Pipeline or give up 13.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. XinJiang GuoTong Pipeline
Performance |
| Timeline |
| Yunnan Jianzhijia |
| XinJiang GuoTong Pipeline |
Yunnan Jianzhijia and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and XinJiang GuoTong
The main advantage of trading using opposite Yunnan Jianzhijia and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.| Yunnan Jianzhijia vs. Agricultural Bank of | Yunnan Jianzhijia vs. Postal Savings Bank | Yunnan Jianzhijia vs. Bank of Communications | Yunnan Jianzhijia vs. China Merchants Bank |
| XinJiang GuoTong vs. Kweichow Moutai Co | XinJiang GuoTong vs. Contemporary Amperex Technology | XinJiang GuoTong vs. Beijing Roborock Technology | XinJiang GuoTong vs. BYD Co Ltd |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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