Correlation Between Yunnan Jianzhijia and Beijing Zhidemai
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Beijing Zhidemai Technology, you can compare the effects of market volatilities on Yunnan Jianzhijia and Beijing Zhidemai 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 Beijing Zhidemai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Beijing Zhidemai.
Diversification Opportunities for Yunnan Jianzhijia and Beijing Zhidemai
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Yunnan and Beijing is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Beijing Zhidemai Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Zhidemai Tec 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 Beijing Zhidemai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Zhidemai Tec has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Beijing Zhidemai go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Beijing Zhidemai
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 0.51 times more return on investment than Beijing Zhidemai. However, Yunnan Jianzhijia Health Chain is 1.95 times less risky than Beijing Zhidemai. It trades about -0.13 of its potential returns per unit of risk. Beijing Zhidemai Technology is currently generating about -0.09 per unit of risk. If you would invest 2,182 in Yunnan Jianzhijia Health Chain on December 1, 2024 and sell it today you would lose (118.00) from holding Yunnan Jianzhijia Health Chain or give up 5.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 94.74% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Beijing Zhidemai Technology
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Beijing Zhidemai Tec |
Yunnan Jianzhijia and Beijing Zhidemai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Beijing Zhidemai
The main advantage of trading using opposite Yunnan Jianzhijia and Beijing Zhidemai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Beijing Zhidemai 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 Beijing Zhidemai will offset losses from the drop in Beijing Zhidemai's long position.| Yunnan Jianzhijia vs. Shenzhen Noposion Agrochemicals | Yunnan Jianzhijia vs. Shuhua Sports Co | Yunnan Jianzhijia vs. BCEG Environmental Remediation | Yunnan Jianzhijia vs. Dr Peng Telecom |
| Beijing Zhidemai vs. Shengda Mining Co | Beijing Zhidemai vs. JCHX Mining Management | Beijing Zhidemai vs. Tianjin Silvery Dragon | Beijing Zhidemai vs. Guocheng Mining 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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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