Correlation Between Yunnan Jianzhijia and Renxin New
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Renxin New Material, you can compare the effects of market volatilities on Yunnan Jianzhijia and Renxin New 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 Renxin New. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Renxin New.
Diversification Opportunities for Yunnan Jianzhijia and Renxin New
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Yunnan and Renxin is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Renxin New Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Renxin New Material 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 Renxin New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Renxin New Material has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Renxin New go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Renxin New
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 0.78 times more return on investment than Renxin New. However, Yunnan Jianzhijia Health Chain is 1.28 times less risky than Renxin New. It trades about -0.04 of its potential returns per unit of risk. Renxin New Material is currently generating about -0.04 per unit of risk. If you would invest 4,640 in Yunnan Jianzhijia Health Chain on September 1, 2024 and sell it today you would lose (2,008) from holding Yunnan Jianzhijia Health Chain or give up 43.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 96.93% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Renxin New Material
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Renxin New Material |
Yunnan Jianzhijia and Renxin New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Renxin New
The main advantage of trading using opposite Yunnan Jianzhijia and Renxin New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Renxin New 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 Renxin New will offset losses from the drop in Renxin New's 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 |
| Renxin New vs. Lander Sports Development | Renxin New vs. Kangping Technology Co | Renxin New vs. Hengdian Entertainment Co | Renxin New vs. Sportsoul 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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