Correlation Between Yunnan Jianzhijia and Xinjiang Communications
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Xinjiang Communications Construction, you can compare the effects of market volatilities on Yunnan Jianzhijia and Xinjiang Communications 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 Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Xinjiang Communications.
Diversification Opportunities for Yunnan Jianzhijia and Xinjiang Communications
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yunnan and Xinjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Xinjiang Communications Constr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Communications 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 Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Communications has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Xinjiang Communications go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Xinjiang Communications
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 1.66 times more return on investment than Xinjiang Communications. However, Yunnan Jianzhijia is 1.66 times more volatile than Xinjiang Communications Construction. It trades about 0.23 of its potential returns per unit of risk. Xinjiang Communications Construction is currently generating about 0.2 per unit of risk. 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 |
Yunnan Jianzhijia Health Chain vs. Xinjiang Communications Constr
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Xinjiang Communications |
Yunnan Jianzhijia and Xinjiang Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Xinjiang Communications
The main advantage of trading using opposite Yunnan Jianzhijia and Xinjiang Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Xinjiang Communications 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 Communications will offset losses from the drop in Xinjiang Communications' long position.| Yunnan Jianzhijia vs. Dalian Thermal Power | Yunnan Jianzhijia vs. Ningbo Jintian Copper | Yunnan Jianzhijia vs. Pengxin International Mining | Yunnan Jianzhijia vs. Juewei Food Co |
| Xinjiang Communications vs. Ming Yang Smart | Xinjiang Communications vs. 159681 | Xinjiang Communications vs. 159005 | Xinjiang Communications vs. Loctek Ergonomic 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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