Correlation Between Yunnan Jianzhijia and Hangzhou Minsheng
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By analyzing existing cross correlation between Yunnan Jianzhijia Health Chain and Hangzhou Minsheng Healthcare, you can compare the effects of market volatilities on Yunnan Jianzhijia and Hangzhou Minsheng 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 Hangzhou Minsheng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yunnan Jianzhijia and Hangzhou Minsheng.
Diversification Opportunities for Yunnan Jianzhijia and Hangzhou Minsheng
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Yunnan and Hangzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Yunnan Jianzhijia Health Chain and Hangzhou Minsheng Healthcare in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Minsheng 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 Hangzhou Minsheng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Minsheng has no effect on the direction of Yunnan Jianzhijia i.e., Yunnan Jianzhijia and Hangzhou Minsheng go up and down completely randomly.
Pair Corralation between Yunnan Jianzhijia and Hangzhou Minsheng
Assuming the 90 days trading horizon Yunnan Jianzhijia Health Chain is expected to generate 0.83 times more return on investment than Hangzhou Minsheng. However, Yunnan Jianzhijia Health Chain is 1.2 times less risky than Hangzhou Minsheng. It trades about -0.04 of its potential returns per unit of risk. Hangzhou Minsheng Healthcare is currently generating about -0.07 per unit of risk. If you would invest 4,788 in Yunnan Jianzhijia Health Chain on October 25, 2024 and sell it today you would lose (2,585) from holding Yunnan Jianzhijia Health Chain or give up 53.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 69.71% |
| Values | Daily Returns |
Yunnan Jianzhijia Health Chain vs. Hangzhou Minsheng Healthcare
Performance |
| Timeline |
| Yunnan Jianzhijia |
| Hangzhou Minsheng |
Yunnan Jianzhijia and Hangzhou Minsheng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yunnan Jianzhijia and Hangzhou Minsheng
The main advantage of trading using opposite Yunnan Jianzhijia and Hangzhou Minsheng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yunnan Jianzhijia position performs unexpectedly, Hangzhou Minsheng 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 Hangzhou Minsheng will offset losses from the drop in Hangzhou Minsheng's long position.| Yunnan Jianzhijia vs. Pengxin International Mining | Yunnan Jianzhijia vs. Aluminum Corp of | Yunnan Jianzhijia vs. Anhui Transport Consulting | Yunnan Jianzhijia vs. Sichuan Yahua Industrial |
| Hangzhou Minsheng vs. Bingo Software Co | Hangzhou Minsheng vs. Linkage Software Co | Hangzhou Minsheng vs. Quectel Wireless Solutions | Hangzhou Minsheng vs. Hainan HNA Infrastructure |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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